Moody's warns U.S. not to skimp on deficit cuts - News and Current Events | futures io social day trading
futures io futures trading

Moody's warns U.S. not to skimp on deficit cuts
Updated: Views / Replies:276 / 0
Created: by kbit Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors – all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you don’t need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Thread Tools Search this Thread

Moody's warns U.S. not to skimp on deficit cuts

  #1 (permalink)
Elite Member
Aurora, Il USA
Futures Experience: Advanced
Platform: TradeStation
Favorite Futures: futures
kbit's Avatar
Posts: 5,884 since Nov 2010
Thanks: 3,303 given, 3,334 received

Moody's warns U.S. not to skimp on deficit cuts

(Reuters) - Moody's Investors Service on Wednesday warned that its top credit rating for the United States could be in jeopardy if lawmakers backtrack on $1.2 trillion in deficit cuts planned over 10 years.
The ratings firm said the failure of a U.S. congressional committee to reach an agreement on deficit reduction did not affect the Aaa rating, but any pullback from agreed automatic cuts to take effect starting in 2013 could prompt it to take action.

"While a change in the composition of the spending cuts would not be a major rating consideration, a reduction in the total amount that would increase the projected increase in federal debt over the coming decade could have negative rating implications," Moody's said in a statement.

Investors have raised concerns that Congress might try and undo the $1.2 trillion in automatic spending cuts -- split evenly between domestic and military programs -- that are to be triggered following the failure of the 12-member congressional "super committee" to reach a deal.

Republicans are already scrambling to shield the military from $600 billion in cuts, though President Barack Obama has vowed to veto any effort to undo those cuts.
The United States already suffered a blow to its top AAA credit rating in early August, when Standard & Poor's cut its rating to AA-plus on concerns over the government's budget deficit and rising debt burden.

On Monday, S&P said the super committee's failure did not affect its current view on the rating.
The 12-member super committee, split evenly between Democrats and Republicans, abandoned its effort to reach a deal on Monday, with both sides blaming the other for the impasse.
Steven Hess, Moody's lead analyst for the United States in New York, said the committee's failure was not a surprise and said the critical factor for Moody's is the total amount of deficit cuts.

Moody's is basing its view of the current rating on the expectation that the full $2.1 trillion in deficit reduction will be carried out.
"We had been expecting there would be deficit reduction of that amount one way or the other," Hess told Reuters in a phone interview.

Moody's had placed a negative outlook on its rating on the United States on August 2, setting a general time frame of 18 months to two years in which it could decide whether to cut the rating.
Competitor Fitch, after affirming its AAA rating with a positive outlook on Monday, said the failure of the super committee "would likely result in a negative rating action -- most likely a revision of the rating outlook to negative."
Less likely would be a one-notch downgrade, Fitch said, adding that a decision would come before the end of the month.

Moody's Hess said the committee could have come up with a bigger deficit reduction package, which would have been positive for the United States' credit-worthiness, "but we didn't necessarily expect that."
"Some members of Congress appear to favor changing the mix of these spending cuts to lessen the impact on defense spending," Moody's said in its statement.

Hess said the composition of the spending cuts was not a major consideration.
"Well, not in a big way. A thorough analysis could indicate that it would have a marginal effect on the rate of economic growth over time depending on the composition of government spending. But we think that would be marginal and not something that would really affect the rating," he said

Moody's warns U.S. not to skimp on deficit cuts | Reuters

Reply With Quote


futures io > > > > Moody's warns U.S. not to skimp on deficit cuts

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Upcoming Webinars and Events (4:30PM ET unless noted)

Wyckoff Hunting for Great Risk/Reward Ratio w/Gary Fullett

Elite only

Digging into the Details of iSystems w/Stage 5 & iSystems

Jun 5

Similar Threads
Thread Thread Starter Forum Replies Last Post
Moody’s Cuts Rating on 12 UK Financial Institutions Quick Summary News and Current Events 0 October 7th, 2011 05:20 AM
Moody's Cuts Greek Debt Rating 3 Notches to Ca Quick Summary News and Current Events 0 July 25th, 2011 04:10 AM
Moody's warns big banks of possible downgrades kbit News and Current Events 0 June 2nd, 2011 10:17 PM
Moody's Cuts Spain's Debt Rating by One Notch Quick Summary News and Current Events 0 March 10th, 2011 04:00 AM
S&P Warns Rival Moody's: We May Actually Downgrade You Quick Summary News and Current Events 0 June 30th, 2010 02:40 PM

All times are GMT -4. The time now is 10:41 PM.

Copyright © 2018 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432,
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2018-05-23 in 0.12 seconds with 19 queries on phoenix via your IP