While candidates from both parties continue to campaign, a looming fiscal cliff is set to possibly cripple the economy starting January 1. The fiscal cliff, along with the paralysis in Congress, has led Moody’s Credit Agency to warn of another downgrade to the U.S. credit rating.
The SEC has launched an investigation into whether the City of Miami misled bond investors. This puts the city inches from financial disaster, a downgraded credit rating for the second year in a row.
Governor Rick Scott has weighed in with his thoughts on the federal debt ceiling. Scott is in favor of letting the U.S. default instead of raising the debt ceiling.
Moody’s Investor Services has fired another shot across the bow of both the federal government and individual states. Tuesday afternoon, Moody’s put five states on review for a downgrade of their credit ratings.
Despite public pronouncements from local officials that the city of Miami is stable, two major bond ratings services have downgraded the city’s ratings which will continue to make investors leery about investing in the city, and could cost the city millions.