And Washington could be said to be failing, some analysts argue. The debt is too big, and government is too paralyzed.
Says who? Moody’s, for one. Also sounding the warnings is Chris Gaffney, senior vice president at St. Louis-based EverBank World Markets. “If you look at total government obligations — including the net present value of (expected) health care costs, as a percentage of GDP — we are in a worse position than either Greece or Ireland,” Gaffney said.
“What can put downward pressure on the dollar? The fiscal cliff, which undermines investors,” said Tu Packard, senior economist at Moody’s Analytics, who wasn’t involved in Moody’s credit warning. She was referring to the end of the Bush tax cuts and mandatory spending cuts facing the government at the end of the year.