Moody's the renowned credit rating agency landed a bombshell on the global markets today as it announced the high possibility and likelihood of downgrading the U.S credit rating from Aaa rating should the tax cuts draft agreed on by President Obama and the Republicans pass.
The agency said that should the draft become a law this will drastically harm the government's income and vaguely widen its debt and deficit. Investors now fear that the safest investment in the worlds might fail to live up to this naming which will definitely harm investors and turn around every angle.
Furthermore, Moody's say that if the bill passes and the benefits of tax cuts on economic growth is compared by the costs, the cost would still weigh much more. Tonight the Senates will vote on the bill and this announcement might very well change the equation.