Moody's gives thumbs up to Wisconsin credit rating, and warns US of possible downgrade

Moody's warns that the US might default on its interest payments, though I have to confess that there is really no nonpolitical reason for this to happen. I fear that Obama has backed himself into a corner where he has claimed 50 times that failure to raise the debt ceiling will produce a default so he will have to carry through on his promise just to maintain some credibility.

Moody's Investors Service said Thursday there is a very small but rising risk of a short-lived default by the United States if there is no increase in the statutory debt limit in coming weeks. . . .

Meanwhile, there is good news for Wisconsin.

“Or can take a look at austerity measures and… grow your way out of fiscal problems. It is why Moody’s rated Governor Walker’s budget credit positive. . . .