Moody’s has lowered the credit outlook of the United States from “stable” to “negative” after a debt auction went poorly. The United States holds auctions to sell treasury bonds to finance the debt. Normally buyers line up to get these bonds, but the debt is getting so high and the interest on the debt alone is predicted to be over $600 billion next year. In order to get buyers interested the rate on the bonds had to be set higher for buyers to accept the risk as the debt moves into unsustainable territory.
Fantastic posts, Chuck!!
Just wish there was a SMIDGE of good news coming out of the DC hell hole.