Thought the banking crisis was over? Moody's, one of the main financial rating agencies, has just downgraded its outlook on several U.S. banking giants.
The rating agency provided a negative outlook for J.P. Morgan & Chase, Wells Fargo, and Bank of America.
Read these reports over and let us know if you are worried about the unsustainable debt situation with the banks and the broader U.S. economy: Morning Star featured this report from Market Watch: Moody's negative outlook on bank debt reflects "The potentially weaker capacity of the government of the United States of America to support the U.S.'s systemically important banks," analyst Peter E. Nerby said in a research note published late Monday.
The ratings agency has affirmed the long-term issuer and senior unsecured ratings of the U.S. at Aaa.
"Continued political polarization within US Congress raises the risk that successive governments will not be able to reach consensus on a fiscal plan to slow the decline in debt affordability," the ratings agency said.
As far as keeping the nation's ratings at Aaa, Moody's said that it expects the U.S. to "Retain its exceptional economic strength." "Further positive growth surprises over the medium term could at least slow the deterioration in debt affordability," the agency said.
"The American economy remains strong, and Treasury securities are the world's preeminent safe and liquid asset." Moody's was actually the SECOND big ratings agency to cut the USA. Fitch was first: U.S. Dollar DOWNGRADED Due To "Governance Deterioration" Something big happened yesterday and you might have missed it amidst all the Trump Arraignment coverage.
https://100percentfedup.com/moodys-downgrades-u-s-banking-giants-is-your-bank-on-the-list/
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