"It is a truism that the US government cannot run out of money to service its debts", Fitch writes, in the rationale accompanying a decision to cut the outlook for the United States to Negative from Stable. That's pretty much all you need to know. But Fitch's comments will likely serve as fodder for more than a few bombastic headlines and plenty of overwrought deficit doomsaying, even as we know from experience how this plays out. Calling into question the full faith and credit of the United St
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10 thoughts on “Fitch-Slapped

  1. That took guts. They are right, of course. If they really wanted to do it right they would have pushed the rating to AA+. (Just to see Trump’s reaction on tweet weekend.)

  2. It reminds me of a joke Christians tell. ‘In 1882, Nietzsche pronounced God is dead. In 1900, God pronounced Nietzsche dead.’

    I doubt the three ratings agencies with the U.S. government NRSRO oligopolic seal of approval would ever be appropriately hard on the U.S. government.

  3. How does paying back creditors with counterfeit money not result in a subprime rating? They should not bother issuing a rating if they just repeat “truisms”

  4. It’s the double whammy, the debt but also the denominator surely plays a big role with a such a huge contraction and effects of lockdowns in place I’m expecting that ratio to balloon very quickly…

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