Tuesday, December 8, 2009

Embarrassment. Moody's warns USA, UK to be more like France and Germany

From the WSJ:



Moody's Investors Service says the U.S. and U.K. must prove they can whittle down their ballooning deficits to avoid threats to their triple-A credit ratings.
In a report released on Tuesday, Moody's set the two countries apart from other top-rated sovereign borrowers, calling them merely "resilient" rather than "resistant," a label it applied to Canada, France and Germany, where public finances are in better shape.
Moody's released the report as part of an effort, spurred by investor demand, to examine the creditworthiness of the world's most highly rated countries. There are 17 such "triple-A"-rated countries...

 

We're in worse fiscal shape than France, a mild socialist state, and GERMANY, which is saddled with the formerly communist East Germany!!!!  If this isn't a wake up call, I don't know what is.  Unsurprisingly, credit protection is more costly for the USA than said countries.  Courtesy of CMA Datavision:








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