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    Michigan Union Threatens Teachers’ Credit Scores

    Most people expect unions to protect workers, not attack their credit ratings. The Michigan Education Association (MEA) does not share these expectations. The union has threatened to damage the credit ratings of teachers who opt out of union dues. Michigan recently became a right-to-work state, meaning workers in Michigan no … More

    Moody's on Debt Limit: Calling Obama's Bluff on Default

    A voice of reason emerged today among the doomsday predictions over a U.S. government default if the debt limit is not raised by mid-October. The Washington Post reports that Moody’s, a top credit rating service, suggested that hitting the debt limit does not mean the U.S. would default: “We believe … More

    Two Years After Downgrade, U.S. Credit Rating Hasn’t Recovered—and Debt Is Worse

    Two years ago today, Standard & Poor’s downgraded the U.S. credit rating—and it hasn’t recovered since. Then, the downgrade came because the President and Congress failed to resolve the long-term spending and debt crisis. Now, the situation is even worse. Congress and the President should rein in out-of-control spending and … More

    Treasury Secretary Lew Ignores Real Debt Problem, Looming Crisis

    U.S. Treasury Secretary Jack Lew suggested yesterday on NBC that “we have already done a lot of deficit reduction.” In reality, government spending and debt are out of control and getting worse. Negligence in fixing the entitlement programs—which consume more than half of the U.S. budget already—has left them fiscally … More

    Moody's: Further Deficit Reduction Needed to Maintain Stable Outlook

    Moody’s changed the outlook on the U.S. credit rating from negative to stable this week, citing improving deficits. While this is good news, policymakers should curb their enthusiasm about what this means for the U.S. debt situation. The improvement could be fleeting, as Moody’s relies heavily on favorable economic growth … More

    S&P Suit: No New Laws Were Needed for 2008 Collapse

    The Department of Justice’s (DOJ) civil suit against credit rating agency Standard & Poor’s (S&P) shows that laws that existed well before the financial crash of 2008 were more than sufficient to deal with its potential causes. While the specific charges in this suit will need to be litigated before … More

    U.S. Budget Deficit for Fiscal Year 2012 Already at $1 Trillion

    The federal budget is reaching benchmarks of astronomical proportions. Hold your applause, though; the budget trends are increasingly headed in the wrong direction. Yesterday, the Congressional Budget Office (CBO) reported that the deficit for fiscal year 2012 has surpassed the $1 trillion mark, and it anticipates the Treasury Department will … More

    Citing Pension Liabilities, Fitch Downgrades NJ Credit Rating

    The Fitch ratings agency announced on Wednesday that it has downgraded New Jersey’s bond rating to AA- from AA. A press release from the ratings agency placed the blame for the downgrade squarely on the state’s massive unfunded pension liabilities – estimated at about $55 billion. The release notes recent … More

    Washington in a Flash: Polls Open in Wisconsin for Recall Elections

    Wisconsinites are headed to the polls to cast their votes in the Wisconsin recall elections. The recall campaigns — against six Republicans today and against two Democratic state senators next week — have gained national attention. They stem from the fierce standoff between the Legislature earlier in the year. The … More

    Obama's Upside Down Press Conference

    President Barack Obama made two fundamental mistakes today in his press conference which was intended to calm the markets. First, he did not lead off with a moment of reflection on the loss of American military lives in Afghanistan over the weekend. Second, he completely missed the boat on why Standard … More