Kenny Polcari of Slatestone Wealth and Eddie Ghabour, CEO of Key Advisors Wealth Management, will analyze the state of the economy and whether to buy market dips.
I am as worried about the spending and debt of the runaway government as anyone. But I have to wonder if there are probably more incompetent and biased credit evaluators. Moody’s – An institution that has just downgraded federal bonds from AAA ratings.
For context, this is the institution that gave subprime mortgage support securities the highest credit rating until the eve of the biggest financial crisis since Great Depression, sweeping away the wealth of trillions of dollars of investors.
The National Bureau of Economic Research has issued this useful reminder of Moody’s accomplice in the meltdown.
“The 2008-9 credit crisis was a credit rating crisis in many ways. Structured financial products such as mortgage-backed securities account for over $11 trillion in outstanding US debt… More than half of Moody’s rated securities carried credit ratings that are likely to have been revived for securities that were decommissioned for their merits being the 2008 and 2008 exci. Dramatically degraded: 36,346 Moody’s rated tranches have been downgraded, and almost a third of downgraded tranches have been earned an AAA rating.”
Ironically, this comes after the Moody’s agreed to pay a $864 million penalty in 2017 for contributing to the crisis due to its flawed rating. Accurately?
Moody’s downgrades US credit ratings for rising debt
After a subprime mortgage blunder. So I need to ask, how can you judge Moody’s credit value?
This is like hiring Pee Wee Herman as your investment advisor.
This issue is not just about less accomplishments than Moody’s stars. Moody’s is politically biased. The biggest hole ever fell into the budget was the $5 trillion president Joe Biden I’m spending it. BidenFlation will shrink the value of existing government bonds. But strangely, no credit downgrade was issued while Biden was in the White House.
R-Fla. Rep. Randy Fine of the group claims that Republicans need to “success” Trump.
That’s now Donald Trump He is the president, and the sky is clearly falling. Moody’s chief economists regularly dump supply-side tax cuts, but believe that government spending is a stimulus package for the economy.
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Moody’s and other credit valuation agencies still What I don’t understand is such a tax cut. Ronald Reagan The 1981 and Trump’s 2017 bills expand the economy and reduce debt burdens as a percentage of the country’s wealth over time. More people working and fewer welfare is a great way to reduce debt expenditures. If President Trump can reach the growth rate he is aiming for up to 3%, his debt burden will begin to shrink.
Remember that the full faith and credibility of the US government stands behind financial debt. It’s pretty close to the guarantee of iron chains of repayment. Yes, Washington certainly has a spending issue, but it’s not. Zimbabwe.
The timing of this downgrade is particularly questionable. Is it a coincidence that it comes as Congress votes? Trump tax cuts?
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Over the past two months, President Trump has secured a new investment capital commitment of at least $1 trillion to come to these shores. Why is this gold rush of investment flooding countries at risk of default?
Maybe investors know that Moody isn’t. Trumpnomics is good for the US economy and those investing in the US.
Stephen Moore is a co-founder of Unleash Prosperity and a former senior economic advisor at Trump.
