Is Moody’s Debt Downgrade a Joke?

In Case You Missed It, on Friday Moody’s issued a debt downgrade on the USA from the pristine AAA rating to Aa1.

And their reasoning?

Decades of rising deficits and interest costs.

Gasp!

Are you kidding?

Someone should give Moody’s an award for being so stupid for not having seen the obvious in America for at least the last decade or two.

BTW this ends a perfect rating streak held since 1917 by America.

But we believe this downgrade is one of many farces by Moody’s over the years.

Huh?

Most investors don’t remember how Moody’s finally downgraded Lehman Brothers’ debt to junk status (Ba1) on September 15, 2008, the same day Lehman filed for bankruptcy.

They also did a similar bang-up job on Enron (2001) …how quickly we forget.

And let’s not forget the sub-prime MBS (Mortgage-Backed Securities…that were made up of garbage bonds packaged with a government guarantee AAA rating) that they finally downgraded after the market pulverized them to 50 cents on the dollar.

It was criminal negligence.

And bond investors still take Moody’s seriously?

LMAO!

Sorry/Not Sorry for the sarcasm.

Because Moody’s has long been the recipient of favors (Cough! Money, Cough! Cough!) for their ratings.

Ironically (or NOT) people actually listen to their ratings like they are credible and independent.

And it reminds me of fact checkers– whose sole purpose like Moody’s is to steer the narrative the way of our overlords.

 

Major Debt Downgrade Coming

 

And, Oh, by the way some of Moody’s biggest shareholders include:

• Recently retired Warren Buffet owns 13.7%…timing?
• Blackrock- 8.6% *
• Vanguard- 8.3% *

 

 

(* Note: Buffett is also the largest shareholder of both Blackrock and Vanguard)

 

 

 

Hopefully you will forgive us if we aren’t sympathetic to Moody’s OR the $37 Trillion of US Debt.

Because interest on the U.S. national debt is now 20% of total federal revenue and rising — We borrow every dollar just to pay interest.

 

And Moody’s could just as easily have made this downgrade while O’Biden was president.

 

So, basically, we are saying they’re a little late to the party.

And based on their track record, we are inclined to believe there’s a real s**t storm incoming quickly.

 

Unfortunately, history books, Wikipedia and the ladies on The View can report that during Trump’s second term in office, Moody’s was forced to downgrade the United States credit rating because of his administrations’ policies.

 

If you are wondering if this is another “Get Trump” ploy, then you are right.

And it falls right in line with our constant pounding the table over the fact that we (and the rest of the world) are facing a Sovereign Debt Crisis.

Read more articles on the Global Sovereign Debt Crisis (HERE).

 

And learn how to Prosper AND Thrive when the (you know what) hits the fan by reading our May newsletter (HERE).

 

Share this with a friend…especially if they take anything Moody’s says seriously.  They’ll thank YOU later.

 

And tell them:

 

We’re Not Just About Finance

But we use finance to give you hope.

Support always welcome via the digital tip jar.

 

*****************************************