The credit rating agency Moody’s on Friday downgraded the U.S. debt to less than AAA, but the financial markets mostly shrugged off the news.

Maybe that’s because Moody’s is the clown outfit that gave the highest credit ratings to the subprime mortgage-backed securities right up to the eve of the greatest financial crisis since the Great Depression.

To remind readers of Moody’s incompetence, we quote from the National Bureau of Economic Research analysis of the mortgage meltdown:

More than half of the structured finance securities rated by Moody’s carried a AAA rating, the highest possible credit rating that is typically reserved for securities deemed to be nearly riskless. In 2007 and 2008… 36,346 Moody’s rated tranches… were downgraded, and nearly one third of the downgraded tranches bore the AAA rating.

Moody’s paid hundreds of millions of dollars of fines and it’s a miracle that it is still in business.

Moody’s has a history of hating tax cuts, but when Biden spent $5 trillion, which exploded the debt and drove inflation above 9%, there was no credit downgrade. No political bias here.

The debt is way too high, but the full faith and credit of the U.S. government stands behind our bonds. We aren’t Zimbabwe. There will be no default.