This is actually pretty funny.
Moody’s is out with a new comment about the debt ceiling fight (via @zerohedge). The ratings agency expects the debt ceiling to be passed, but… they say that if it looks like the US might default, America’s pristine credit rating would have to be placed “under review.”
Seriously!? OBVIOUSLY if a default appeared likely, then the US rating should be under review. In fact, it should be downgraded. And in fact, it should be downgraded a lot, since a default is basically the worst thing possible for bond investors.
And in fact, Moody’s should probably already
We said in early January that Moody’s should do this, go ahead and directly threaten a downgrade, since there are some actual power players in DC that would bring us close to default.