Moody's warns state and local governments could see credit downgrades

Source: Politico and Rueters

Some state and local governments that issue debt could face “significant stress” if market instability continues and see credit downgrades, Moody’s warned Wednesday.

Although most municipal issuers are “well insulated from shock,” Moody’s said there are some governments that could be weakened in a volatile market environment.


However, the agency does not anticipate widespread defaults, but opened the door to possible downgrades, although not by more than one level, Reuters reported. http://www.reuters.com/article/2011/08/10/us-municipals-moodys-idUSTRE77956Y20110810

“We expect that the vast majority of these issuers could successfully manage through a period of diminished market access and tight liquidity without facing a severe deterioration in their credit,” Moody’s said in a statement.

Moody’s managing director Timothy Blake said “most municipal issuers are somewhat weaker than they were prior to the last major market disruption” and that is why “some may face significant stress if hostile market conditions emerge.”


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Read more: http://www.politico.com/news/stories/0811/61039.html

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Standard & Poors handled the national, now it is Moody's turn to lay out the brutal truth called insolvency to the state and local governing bodies.

DJIA is down 520 points as I type, BTW.

We have a whole bunch of governors and congress persons who are obviously not interested in fixing the mess we have ourselves in. If you were loaning money to a friend and that friend is obviously and willfully unstable would you not ask at the least for more interest or for changes from them?

These same groups have a share in the blame for the mess because they were not more careful about who they borrowed money to in the housing crash etc. Now they are making more sensible decisions and we get mad at them? Further, I think they may be the only ones who can get the attention of the idiots who are obstructing anything that might help. And the only ones strong enough to demand those changes.

:wtf: :wtf:

Blaming the victim works so well, don't you think?

:toast:

that way Scott Walker really goes bye bye. I imagine there'll be a boycott of Waukesha now since it happened not once but twice. Whole state is being run by one county.