Oh boy. Buckle up for the next week and coupon expiration tonight. But buckle up for this because Moody's just downgraded us. They warned this might happen on September 25th, saying that while quote Debt Service payments would not be impacted and a short-lived government shutdown would be unlikely to affect or disrupt the economy, it would underscore the weakness of Us institutional and governance strength relative to other AAA rated.

Nations No bueno here. This is a big slap in the face to America coming right ahead of a budget negotiation which I'll give you updates on in this video. Boy oh boy, this is not looking good. Here's the Scoop from Moody So Moody's today turned from neutral on the United States government and economy to negative.

They're citing National Fiscal strength. In plain: English Moody's is like this: yo everyone listen up. The government printed too much money. They spent way too much money.

They got lots of debts that got to be paid off. We don't think Congress is going to be capable of doing anything until 2025, and over the next year somebody's going to have to pay for these higher interest rate debts because as your treasuries roll over, guess what? The government's got to pay more money in debt. And as they pay more money. More Money More Problems More bills, More problems.

More like it. But anyway, that's quite literally the translation of what they said. More formally, an analyst from Moody's who was interviewed just seconds ago. it just came across the tape here said quote: the recent bond selloff in the treasury Market that is bonds falling yields going up did not impact the decision.

Instead, the expectation that the government's going to have to support higher debt payments because of higher rates next year are what impacted the decision. Plus Polariz around the budget making process. They think basically Congress is going to be dysfunctional and very extreme until the election. and since nothing actually changes at the election because you have to get through the lame duck session through November and December Guess what? You have to wait until January 2025 before you actually expect anything gets done.

And because they think our debt is so extreme and affordability is so extreme right now, they are downgrading us for at least they say the next 18 to 24 months now. In practice, because this just occurred postmarket here, we can see some of the Market's reaction relatively muted in post uh postmarket trading hours. Uh, but uh, treasury yields did pop a little bit on this I Think the big question will be how Treasures move going into Monday As people digest this and as we get our budget from Mike Johnson So remember Mike Johnson just became the Speaker of the House The last dude who offered a clean funding resolution to fund the government got fired. Yeah, that was McCarthy Okay, so now we have Mr Mike Johnson No plan yet though.

we expect to hear a plan release from N Mike Johnson either today or tomorrow. And since today is basically well, it's already like you know, 7: P.m. eastern time, probably tomorrow. Mike Johnson So far says he is less interested in focusing on impeaching Joe Biden However, we do have just one week less left to focus on this budget resolution.

Uh, there are a lot of people that are somewhat frustrated about Johnson that he's not focused on impeaching Biden Others say he's just focused on getting this budget done first and then quite frankly, we can worry about the elections next year. There are three options and right now Mike Johnson's plan is to have something to vote on by Wednesday of next week. So a plan revealed this weekend. people can read it or they probably won't and then it could be voted on.

Wednesday There are three options: They could go with a stop Gap Bill which is basically just kick the can down the road to some predetermined date. They can go with option number two, which is throwing in a stop got bill which is kicking the can down the road and then throwing in some sweeteners for things they want like border security that doesn't have bipartisan support. Option number one does have bipartisan support and option number three would be kind of splitting the government's funding up into what they're calling a laded approach which is like we'll fund this, but not that it's kind of a way to try to negotiate with the Dems Uh, keep this in mind that Joe Biden Is requesting 106 billion dollar for aid for Taiwan Israel and Ukraine Republicans Have said, we'll give you not6 billion. How about $14 billion to Israel And then we're also going to cut funding to the IRS.

So that's where we stand right now. In a situation where financial institutions are going, y'all freak idiots are just costing yourself more money. We are going to downgrade you for that and at the same time you got people on the left going. we need to send more money and then you got people on the right who say we also need to send more money, but we want to send it our way and we're going to debate about it.

Then you have other people on the right who say stop sending more money, Then you have other people on the left who are like no send even more money. It's just a disaster. We have no idea what's going to happen, but let's buckle up because this is the kind of uncertainty that leads the stock market to pull back. However, and historically we usually tend to get through these periods of uncertainty and they tend to be nothing other than buying opportunities.

But then again, buying opportunities are only good to the extent that you actually have money to buy stuff with. And if you do find that you have an extra under $100 check out some of the newers pro courses at Meetkevin.com There are phenomenal courses coming out they're all brand new recordings. Some of the top sellers right now are: how to present and speak with confidence, negotiate any deal and win Renovate Real Estate How to sell anything to anyone? How to start a profitable sign hustle. Talk about Llc's insurance, you name it.

fundamentally. analyze stocks. never pay taxes in America Boost your productivity. Learn all about these courses and more by going to Meetkevin.com You can also Shadow me at the top You'll see shadowing Kevin or financial advice with Kevin Thank you so much for watching this video.

Appreciate yall and we'll see you in the next one. Goodbye, Why not advertising these things that you told us here? I Feel like nobody else knows about this? We'll We'll try a little advertising and see how it goes. Congratulations man you have done so much People love you people look up to you Kevin PA there financial analyst and YouTuber meet Kevin Always great to get your take now I Have to read you a legal disclaimer: Even though I'm a licensed Financial Advis or licensed real estate broker and becoming a stock broker, this video is neither personalized Financial Advice nor real estate advice for you. It is not tax, legal, or otherwise personalized advice tailored to you.

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