Debt ceiling deadline: Will rates rise after August 2nd?

[UCGal]

[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.

[Anonymous]

I’m not really into these real state stuff but i know issues on foreclosure crisis has had a wide variety of long-lasting effects. Many families that lost their properties have turned to leasing, which is flooding the industry. The federal government is looking for suggestions on how to rent out many or all of the 250,000 foreclosed-on, vacant properties that it is at least part who owns. The government may be able to benefit from installment loans coming in as payments every month.

[Anonymous]

I’m not really into these real state stuff but i know issues on foreclosure crisis has had a wide variety of long-lasting effects. Many families that lost their properties have turned to leasing, which is flooding the industry. The federal government is looking for suggestions on how to rent out many or all of the 250,000 foreclosed-on, vacant properties that it is at least part who owns. The government may be able to benefit from installment loans coming in as payments every month.

[Anonymous]

I’m not really into these real state stuff but i know issues on foreclosure crisis has had a wide variety of long-lasting effects. Many families that lost their properties have turned to leasing, which is flooding the industry. The federal government is looking for suggestions on how to rent out many or all of the 250,000 foreclosed-on, vacant properties that it is at least part who owns. The government may be able to benefit from installment loans coming in as payments every month.

[Anonymous]

I’m not really into these real state stuff but i know issues on foreclosure crisis has had a wide variety of long-lasting effects. Many families that lost their properties have turned to leasing, which is flooding the industry. The federal government is looking for suggestions on how to rent out many or all of the 250,000 foreclosed-on, vacant properties that it is at least part who owns. The government may be able to benefit from installment loans coming in as payments every month.

[Anonymous]

I’m not really into these real state stuff but i know issues on foreclosure crisis has had a wide variety of long-lasting effects. Many families that lost their properties have turned to leasing, which is flooding the industry. The federal government is looking for suggestions on how to rent out many or all of the 250,000 foreclosed-on, vacant properties that it is at least part who owns. The government may be able to benefit from installment loans coming in as payments every month.

[Anonymous]

The one good thing that will come from the Congress not raising the debt ceiling will be when all of these new Republican governors have to deal with the cuts. The red states are the ones who depend on federal money advance the most and therefore have the most to lose. Be careful what you wish for! And if the nation’s credit rating goes down, uncertainty could rattle the bond market, making investors less likely to jump in while driving up interest rates that make borrowing more costly for governments around the U.S.

[Anonymous]

The one good thing that will come from the Congress not raising the debt ceiling will be when all of these new Republican governors have to deal with the cuts. The red states are the ones who depend on federal money advance the most and therefore have the most to lose. Be careful what you wish for! And if the nation’s credit rating goes down, uncertainty could rattle the bond market, making investors less likely to jump in while driving up interest rates that make borrowing more costly for governments around the U.S.

[Author]

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