Obama’s fundamental transformation is shaking America to its foundations.
Moody’s Investors Service put the U.S. under review for a credit rating downgrade as talks to raise the government’s $14.3 trillion debt limit stall, adding to concern that political gridlock will lead to a default.
The Aaa ratings of financial institutions directly linked to the U.S. government, including Fannie Mae, Freddie Mac, the Federal Home Loan Banks, and the Federal Farm Credit Banks, were also put on review for cuts, Moody’s said in a statement today.
The U.S., rated Aaa since 1917, was put on review for the first time since 1995.
Nearly 100 years of continuous AAA and it’s only taken Obama three years to put it in jeopardy. S&P put the US on notice back in April.
If you haven’t been following the current talks, two things show just how unseriously President Obama is treating them. Over the weekend, he offered his already rejected and largely detail-free budget proposal as the compromise position. And on Tuesday as details of the talks emerged, the nation learned that the Obama-Biden side was only offering $2 billion in spending cuts. Yes, you read that right — when we’re dealing with trillions in out of control spending, Obama offers to cough up $2 billion. That’s nearly a rounding error on the entire budget. And they’re still pushing for new spending today.
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