Thursday, January 27, 2011

HOT: Moody's Warns on U.S. Debt

Moody's Investors Service has just released a warning on on U.S. government debt. The slow moving ratings agency said that there is a the growing likelihood that it could issue a negative outlook on the credit rating of the United States in the next two years.

The rating agency said the risk to the U.S.'s coveted AAA rating, while small, is rising and is seen likely to continue to rise in the next several years.

Rates are headed higher without this rating threat. There is no reason to own government debt at any level right now, federal, state or local. When you have a slow moving agency like Moody's warning, you know the problem is very serious.

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