Moody's puts US on notice regarding debt ceiling

Actually, it's not that big of a deal but the press will spin it that it is and the Democrats will play it up too. CNN: Moody's Investors Services said it had initiated the review because of "the rising possibility" that Congress will fail to raise the debt ceiling by Aug. 2 -- something that could lead to a U.S. default on its debt. If the debt ceiling isn't raised by then, the Treasury Department says it will no longer be able to pay all the country's bills in full and on time without being allowed to borrow new money. (Read: Debt ceiling FAQ) "Moody's considers the probability of a default on interest payments to be low but no longer to be de minimis," Moody's said in a statement. The United States enjoys its AAA rating in part for having always stood behind its debt and paid its bills on time. As a result, U.S. Treasury bonds are considered the world's safe-haven investment.The Treasury Department issued an immediate response Wednesday. "Moody's assessment is a timely reminder of...(Read Full Post)