Moody's is one of those nefarious capitalist banking creations that allows the thieves to rank the criminals, and downgrade whole countries essentially.
Threatening the credit rating of the U.S. if the debt ceiling is not raised by August 2th is just another round of canon fodder in class warfare that is being waged right in front of our noses, and in Europe as well.
At the start of this week, European finance ministers met in emergency session to discuss means to pacify the markets. In a major concession, they agreed to reverse their existing policy and make available the resources of the European Union bailout fund to directly buy up Greek debt.
The markets reacted to this concession with a renewed offensive. On Tuesday, Moody's downgraded Ireland's debt to junk status, and on Wednesday, Fitch Ratings downgraded Greek sovereign debt, declaring that default by Greece was "a real possibility."
At the same time, the major credit rating firms put US government debt on watch, warning that failure to raise the debt limit by August 2 would be considered a default.
The Progressive Democrats of America have a little something to say about Moody's.
There is more than a touch of audacity, and arrogance, in at least three aspects of S&P’s report. First, they not only made massive misjudgments in their ratings over the past four years, they’ve been making them for decades now. And there is irony and more than a bit of tragedy in this for us all because the “insider judgements” by the financial system’s pecking order, such as it is, don’t seem to place them anywhere near the top--despite their key function--to rate the products and performances of parts crucial to that entire sytem: not only debt ratings, but firms and nations alike. If that sounds like the arrangements for a “world turned upside down” to you, you have a good ear.
In case you don't know how or why Moody's works, well here is one explanation:
t is being reported that if the United States Congress does not raise our debt limit, Moody’s is going to drop our credit rating. So just what or who is Moody’s? Well I will tell you. Moody’s Corporation is the parent company of Moody’s Investors Service, which provides credit ratings and research covering debt instruments and securities. Moody’s is also the organization that gave Triple A ratings to the bad derivatives made up of the toxic mortgages that resulted in the economic collapse.
It worked like this. The banks made loans that they doubted could be paid back; high risk, high interest loans. They then packaged those bad loans into derivatives, after which they hired Moody’s to evaluate these toxic loans and give them a fraudulent Triple A rating, after which they were purchased by institutions like workers’ pension plans consisting of 401Ks.
Anyone, and that means any politician taking these criminal enterprises seriously needs their head examined. And...some of Moody's, along with the criminal bankers, should be in jail.