DEBT CEILING: Moody's Warns Of Downgrade, UBS Warns Of Armageddon, And There's No Sign Of A Deal

ceiling

Photo: Flickr, Velo Steve

Wanted to give you a quick update on the debt ceiling.

  • First, an update on this morning’s story… POLITICO had reported that the next three days are going to be huge and could decide the fate of the whole debate. Well, we hear from a Capitol Hill source that nobody believes this is going to happen. They’re not anywhere close to a dealĀ  on any aspect of it.
  • Meanwhile, Moody’s just came out and made some more comments about the frailty of the us AAA rating. Even a temporary, small hike might not be enough to avoid a downgrade. Also, failure to strike a big budget cutting agreement might also prompt a downgrade. Oy!
  • Finally, FT Alphaville reported on a UBS report which basically said: If we don’t get a deal by August 2, it’s Armageddon. They say that the idea of prioritizing Treasury coupons won’t work.

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