Moody’s warns US, China it’s time to change their ways

Moody’s Investors Service is busily and provocatively poking not just one bear — but the two biggest creatures in the global economic kingdom. Last month, the agency’s analysts threatened to yank away Washington’s last remaining AAA credit rating. That broadside exacerbated the rise in US 10-year bond yields to 17-year highs. This week, it was Beijing’s turn to hear Moody’s growl. On Tuesday (December 5), Moody’s cut its outlook on the Chinese government's debt to “negative” from “stable” as Asia’s biggest economy grapples with an economic slowdown and deepening property crisis.