Another warning shot was fired today against the U.S. over its failure to raise the debt ceiling. Moody's Investors Service threatened to lower America's credit rating due to the rising risk the government will default on its debt.
The credit rating agency said it plans to review the fed’s top triple-A bond rating because lawmakers haven’t been able to reach a deal over increasing the nation's $14.3 trillion borrowing limit to avoid a default. (Hate to mention it, but it's not turning out so well for Greece, Ireland and Portugal).
We technically hit this magic debt marker back in May. The Treasury says the government will default on its loans — for real — if nothing is done by August 2.
In response to Moody’s announcement, House Speaker John Boehner lashed out at Obama.
"As Speaker Boehner has warned for months, if the White House does not take action soon to address our nation's debt crisis by reining in spending, the markets may do it for us. This action by Moody's today reinforces the speaker's warning,'' said Boehner’s spokesperson.
We'll be discussing this more in the show tonight at 8pm ET.