I'll be talking about the deal on WNYC's Brian Lehrer show a bit after 10, along with Karen Tumulty and Reihan Salam. Meanwhile, don't get too exercized about stories like this.
"Reductions of the magnitude now being proposed, if adopted, would likely lead Moody's to adopt a negative outlook on the AAA rating," the credit rating agency said in a new report. "The chances of a significant improvement in the long-term credit profile of the government coming from deficit reductions of the magnitude proposed in either plan are not high."
A "negative outlook on the AAA rating" is what we have right now. We can maintain that. Now, if Moody's wants to do this after the deal is passed, I suppose you can't stop them. They are watching the fate of debt rescue plan that doesn't go after revenue, after all.