Shhhh! "We're Not Defaulting"

Shhhh! "We're Not Defaulting"

While officials from the Administration raised their rhetoric over the weekend about the possibility of a debt default if the debt ceiling isn't raised, they privately have been telling top executives at major U.S. banks that such an event won’t happen.

In a series of phone calls, administration officials have told bankers that the administration will not allow a default to happen even if the debt cap isn't raised by the August 2 date.

A senior banking official said that administration officials have provided guidance to them that even though a default is off the table, a downgrade "is a real possibility for no other reason than S&P and Moody's have to cover (themselves) since they've been speaking out on the debt cap so much."

This guidance is a big reason why Wall Street has largely dismissed the possibility of default, and though the markets have been jittery amid the talk of default, they haven't imploded as would be the case, many economists fear, if the nation missed a payment on its debt.

The banking official said the administration understands that if there were to be a default, it would likely spark another financial crisis.

"They also know they can pay the debt with cash on hand," this official said.

http://www.foxbusine...not-defaulting/

Jim Rogers... as usual he is straight to facts

AAA at Risk? ‘Moody’s Got No Clue, US Downgrade Long Overdue’!

http://socioecohisto...e-long-overdue/

There's so much corruption.
How Moody's sold its ratings - and sold out investors
As the housing market collapsed in late 2007, Moody's Investors Service, whose investment ratings were widely trusted, responded by purging analysts and executives who warned of trouble and promoting those who helped Wall Street plunge the country into its worst financial crisis since the Great Depression.
Moody's promoted executives who headed its "structured finance" division, which assisted Wall Street in packaging loans into securities for sale to investors. It also stacked its compliance department with the people who awarded the highest ratings to pools of mortgages that soon were downgraded to junk. Such products have another name now: "toxic assets."

Edited by Rogerdodger, 26 July 2011 - 08:32 PM.

Wall Street and banks have no fear. It's pretty clear that congress and the US govt is bought and paid for by them and Goldman. After all, another stimulas package seems to be needed....