Sign in to comment!   Emac's Bottom Line  Ban the Debt Limit
Should there be a debt limit at all? Moody's Investors Service
doesn't think so.  In a new report that says the debt ceiling
creates periodic uncertainty, Moody's drops this intriguing
line:    Moody's senior credit officer Steven Hess, who wrote
the report, went on to say that "we think that the way the
government handles the [debt] limit, particularly in times of
divided government, is credit negative for the US." 
Translation: Moodys is asking the U.S. government to toss the
limit, and instead have a framework based on the size of the
total budget to keep borrowing in check. Can that work?  Not in
an environment where the White House now calls the Republicans'
"cut, cap and balance" bill arbitrary, in a statement saying
"neither setting arbitrary spending levels nor amending the
Constitution is necessary to restore fiscal responsibility."
Problem is, DC has also treated the debt ceiling as an
"arbitrary spending level," raising it about 100