Moody’s ratings agency warned Thursday that it probably would have to downgrade the U.S. government’s debt rating unless the White House and Congress work out a “credible agreement on substantial deficit reduction” by the middle of next month. In its stark statement, Moody’s - one of the three big ratings agencies that help determine how easy it is for the government to borrow money - said the fight over raising the debt ceiling is worse then expected, and that’s increased the risk that the government will default on its debt. Just as significantly, the agency said if lawmakers miss this chance to lower deficits, then no deal will get done before the 2012 elections. So Moody’s set a mid-July deadline for progress on a deal, or else it said a downgrade of the U.S. rating “is likely.” The warning follows the decision by Standard & Poor’s in April to lower its outlook on U.S. debt from stable to negative."
Is the US the next Greece? And if so, could we see what is happening there (civil unrest, etc.) transplanted here? Stay tuned....