Moody’s strips U.S. of triple-A credit rating

Re:Moody’s strips U.S. of triple-A credit rating by ajross on Friday May 16, 2025 @08:43PM (#44011121)

I don't follow that economics. How does interest rates being high make bonds easier to pay? And how to I get some of that action, that sounds pretty magic to me. :)

(No, that's not correct. Borrowing in the 80's was more expensive. Period.)

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Re:Moody’s strips U.S. of triple-A credit rating by scoofy on Friday May 16, 2025 @09:45PM (#44011420)

You’re mistaking rate vs outstanding debt.

If I have a $1M mortgage at 6%, and a $1000 credit card debt at 25%, which is harder for me to pay off, assuming I make $100K per year?

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Re:Moody’s strips U.S. of triple-A credit rating by ajross on Friday May 16, 2025 @10:18PM (#44011551)

Click on the link. I assure you I am not.

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Re:Moody’s strips U.S. of triple-A credit rating by scoofy on Saturday May 17, 2025 @01:54AM (#44012319)

I see your point. I suppose my only response is that a significant amount of our debt is being rolled over annually. It’s currently being rolled over from extremely low interest rates to non-trivially high interest rates. We should expect the spike on the left side of the graph to keep increasing unless rates decline significantly, soon.

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