As Debt Talks Falter, Moody's Places U.S. Credit Rating Under Review

Thursday, July 14, 2011

Responding to concerns that lawmakers in Washington will fail to reach an agreement on raising the country's debt threshold, credit ratings agency Moody's placed the U.S.'s credit rating under review for the first time since the federal government shutdown in 1995. The U.S. still risks losing the Aaa rating it has had since 1917, even if lawmakers come to a last minute agreement before the August 2 deadline.

In bipartisan meetings at the White House last night, President Obama reportedly walked out of the meeting in frustration with Congressional Republican leaders, whose rank and file members continue to insist any deal not include tax increases. Worried that voters will ultimately hold Republicans accountable if the government defaults, Senate Republican leader Mitch McConnell is advocating a procedural plan that will allow President Obama to raise the debt limit without Congressional approval.

Takeaway Washington correspondent Todd Zwillich and New York Times Wall Street and financial reporter Louise Story have been following the debt talks, and talk about the political and economic impact of the latest developments.


Louise Story and Todd Zwillich

Produced by:

Joseph Capriglione

Comments [1]


The President is too big too fail and he wants a bailout from the Republicans by having them share the blame for his policies. The irony is that the Republicans who were severely criticized for protesting the vast spending last year will be severely criticized for raising the debt ceiling and taxes to pay for the debt by the people who supported the vast spending in the first place. This is the President's plan for re-election which comes at the expense of the US economy.
The Republicans have a majority in the US Congress because the public wants them to restore fiscal responsibility and only the US Congress can block the President's spending. Let us hope they keep their campaign promises and honor their Constitutional obligations.

Jul. 14 2011 02:54 PM

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