Rating the Shutdown

No movement on the budget tonight may bring the ratings agencies into the picture tomorrow. The Treasury Dept.  will do what they can to avoid issuance disruptions. The Bill market and maturing notes could be adversely effected.  Thus, fashionably late as always, the raters may feel compelled to put several issues on NEGATIVE watch.

"Closed" is a far cry from "broke," however. Given the EU kabuki, our disgraceful situation will need to push itself onto the headlines. Here's the deal- forget the budget. Forget the debt ceiling. Forget left and right. Every single US debt security should come with a disclosure on the bottom. "Interest to be paid by issuance of like security." The US "refunds" others are about to embrace "rescheduling." THIS MAKES ALL THE DIFFERENCE. It would be encouraging to see a free market discussion about price could take place without morphing into a binary event. There's a ton of trading between 3 times over subscribed bullet, a tail and failing. Can we talk?




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