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July 26, 2011 at 1:15 PM #18971July 26, 2011 at 1:21 PM #713045
briansd1
GuestIt depends what the rating agencies do. Rates will rise if the credit agencies downgrade the debt.
Even if an agreement is reached, but if that agreement doesn’t provide long enough certainty to the markets, the agencies may downgrade our debt anyway.
For example, if we can only get a 6-month deal, with another debt ceiling fight looming early next year, then we may suffer a credit downgrade anyway.
The markets need certainty that the Federal government has enough credit to operate for years, not months.
July 26, 2011 at 1:21 PM #713139GuestIt depends what the rating agencies do. Rates will rise if the credit agencies downgrade the debt.
Even if an agreement is reached, but if that agreement doesn’t provide long enough certainty to the markets, the agencies may downgrade our debt anyway.
For example, if we can only get a 6-month deal, with another debt ceiling fight looming early next year, then we may suffer a credit downgrade anyway.
The markets need certainty that the Federal government has enough credit to operate for years, not months.
July 26, 2011 at 1:21 PM #714246GuestIt depends what the rating agencies do. Rates will rise if the credit agencies downgrade the debt.
Even if an agreement is reached, but if that agreement doesn’t provide long enough certainty to the markets, the agencies may downgrade our debt anyway.
For example, if we can only get a 6-month deal, with another debt ceiling fight looming early next year, then we may suffer a credit downgrade anyway.
The markets need certainty that the Federal government has enough credit to operate for years, not months.
July 26, 2011 at 1:21 PM #713889GuestIt depends what the rating agencies do. Rates will rise if the credit agencies downgrade the debt.
Even if an agreement is reached, but if that agreement doesn’t provide long enough certainty to the markets, the agencies may downgrade our debt anyway.
For example, if we can only get a 6-month deal, with another debt ceiling fight looming early next year, then we may suffer a credit downgrade anyway.
The markets need certainty that the Federal government has enough credit to operate for years, not months.
July 26, 2011 at 1:21 PM #713735GuestIt depends what the rating agencies do. Rates will rise if the credit agencies downgrade the debt.
Even if an agreement is reached, but if that agreement doesn’t provide long enough certainty to the markets, the agencies may downgrade our debt anyway.
For example, if we can only get a 6-month deal, with another debt ceiling fight looming early next year, then we may suffer a credit downgrade anyway.
The markets need certainty that the Federal government has enough credit to operate for years, not months.
July 26, 2011 at 9:59 PM #713998moneymaker
ParticipantI keep hearing this, but exactly which “agencies” are we talking about here? The same ones that got bailed out or overseas agencies?
July 26, 2011 at 9:59 PM #714355ParticipantI keep hearing this, but exactly which “agencies” are we talking about here? The same ones that got bailed out or overseas agencies?
July 26, 2011 at 9:59 PM #713845ParticipantI keep hearing this, but exactly which “agencies” are we talking about here? The same ones that got bailed out or overseas agencies?
July 26, 2011 at 9:59 PM #713247ParticipantI keep hearing this, but exactly which “agencies” are we talking about here? The same ones that got bailed out or overseas agencies?
July 26, 2011 at 9:59 PM #713155ParticipantI keep hearing this, but exactly which “agencies” are we talking about here? The same ones that got bailed out or overseas agencies?
July 27, 2011 at 9:13 AM #713327UCGal
Participant[quote=threadkiller]I keep hearing this, but exactly which “agencies” are we talking about here? The same ones that got bailed out or overseas agencies?[/quote]
They’re talking about the big 3 credit agencies: Moody’s, S&P, and Fitch. They’re pretty international… They rate everyone’s debt – Japan, Greece, the US…Not sure about their bailout status – but they were integral in the whole MBS toxic tranches fiasco… so they have some credibility issues. But they still are the only game in town short of doing your own analysis of credit worthiness.
That said… I heard an interview with Bill Gross of Pimco last night on NPR – He said Japan was downgraded by these agencies in 2002, and it didn’t have a big effect on their abilty to get credit. In the current case – as long as we still pay our bills (interest) people will still buy treasuries. A rise in interest rates on treasuries might actually cause folks like Pimco to start buying treasuries again.
July 27, 2011 at 9:13 AM #713924Participant[quote=threadkiller]I keep hearing this, but exactly which “agencies” are we talking about here? The same ones that got bailed out or overseas agencies?[/quote]
They’re talking about the big 3 credit agencies: Moody’s, S&P, and Fitch. They’re pretty international… They rate everyone’s debt – Japan, Greece, the US…Not sure about their bailout status – but they were integral in the whole MBS toxic tranches fiasco… so they have some credibility issues. But they still are the only game in town short of doing your own analysis of credit worthiness.
That said… I heard an interview with Bill Gross of Pimco last night on NPR – He said Japan was downgraded by these agencies in 2002, and it didn’t have a big effect on their abilty to get credit. In the current case – as long as we still pay our bills (interest) people will still buy treasuries. A rise in interest rates on treasuries might actually cause folks like Pimco to start buying treasuries again.
July 27, 2011 at 9:13 AM #714075Participant[quote=threadkiller]I keep hearing this, but exactly which “agencies” are we talking about here? The same ones that got bailed out or overseas agencies?[/quote]
They’re talking about the big 3 credit agencies: Moody’s, S&P, and Fitch. They’re pretty international… They rate everyone’s debt – Japan, Greece, the US…Not sure about their bailout status – but they were integral in the whole MBS toxic tranches fiasco… so they have some credibility issues. But they still are the only game in town short of doing your own analysis of credit worthiness.
That said… I heard an interview with Bill Gross of Pimco last night on NPR – He said Japan was downgraded by these agencies in 2002, and it didn’t have a big effect on their abilty to get credit. In the current case – as long as we still pay our bills (interest) people will still buy treasuries. A rise in interest rates on treasuries might actually cause folks like Pimco to start buying treasuries again.
July 27, 2011 at 9:13 AM #713233Participant[quote=threadkiller]I keep hearing this, but exactly which “agencies” are we talking about here? The same ones that got bailed out or overseas agencies?[/quote]
They’re talking about the big 3 credit agencies: Moody’s, S&P, and Fitch. They’re pretty international… They rate everyone’s debt – Japan, Greece, the US…Not sure about their bailout status – but they were integral in the whole MBS toxic tranches fiasco… so they have some credibility issues. But they still are the only game in town short of doing your own analysis of credit worthiness.
That said… I heard an interview with Bill Gross of Pimco last night on NPR – He said Japan was downgraded by these agencies in 2002, and it didn’t have a big effect on their abilty to get credit. In the current case – as long as we still pay our bills (interest) people will still buy treasuries. A rise in interest rates on treasuries might actually cause folks like Pimco to start buying treasuries again.
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