Moody’s Just Downgraded the U.S. Credit Outlook.
But Let’s Not Forget...Back in the mid-2000s, Moody’s and other major credit rating agencies gave AAA ratings to mortgage-backed securities that were anything but safe...that were the catalyst of the late 2000s market crash.
If you want to make the argument the US will lose our reserve currency status, that's a relevant conversation, but as of today, the US still has a Federal Reserve system that will 'fund' whatever US Treasuries or debt needed to fund government operations...bottom line, for better or worse, we have a fiat currency and have zero risk of default.
Just a little reminder as the world freaks out about this US Credit downgrade.... don't forget the messenger.
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