Excerpt:

If the debt limit is raised again and a default is avoided, the Aaa rating would likely be confirmed. Moody's did note the outlook assigned at that time to the government bond rating would very likely be changed to negative at the conclusion of the review unless "substantial and credible agreement is achieved on a budget that includes long-term deficit reduction."

That last coming from the agency whose utter recklessness and gross irresponsibility in giving AAA ratings to complete trash being sold by big Wall Street banks was so helpful in triggering the meltdown. 

With this statement they're giving the GOP a fig leaf to escape culpability for their outrageous stunt in playing fast-and-loose with the debt ceiling limit extension.  Not content to do a crappy job themselves, they mean to tell Congress what kind of economic policy the country needs right now--you guessed it, austerity. 

Actually, a budget that would lead to long-term deficit reduction would be a budget that reduces the unemployment rate dramatically from 9+ percent, the point destor has been making.  In short, that would be no budget today's GOP will give the time of day.  How much would you care to bet that if Congress actually did pass a jobs and demand-generating budget instead of a jobs and demand-shrinking budget, Moody's would say "that wasn't what we had in mind"? 

The inmates continue to fight hard to run the asylum.