Downgrade of U.S. Debt Looms on the Horizon
Moody's may give U.S. debt a full-fledged downgrade as soon as next week.
A well-placed source tells me that Moody's, the bond rating giant that just announced a "review" of the U.S. debt, may turn it into a full-fledged downgrade as soon as next week. True or not, the real risk of a downgrade shows just what a terrible idea that debt ceiling debate was: a downgrade alone will spike interest rates by 50 or so basis points and a default could cause them to double. Republicans were wrong to start the debt ceiling debate. They'll certainly pay the price.