Moody's has cut the credit ratings of several big Wall Street banks, because it's less confident that the government will bail them out if they fuck up. Baby steps.

The idiots who decided to extort the debt ceiling for their ideological demands, because they're incapable of making their non-arguments persuasively enough in the usual court of public opinion, are not getting nearly enough shit for their psychotic, economically illiterate actions. Now the United States has the credit rating agency Moody's on its ass and is placing the government's debt rating under review — not over the manageability or size of the debt, but thanks this completely artificial statutory number.

Here's some lovely Thursday afternoon news: The credit rating agency Moody's has pre-warned the United States about the possibility of debt default later this year, saying that it will downgrade ratings on America's public debt — the safest investment in the world — from AAA to AA should an agreement not be reached.

Highly questionable ratings agency Moody's today classified Ireland's banks as junk — which is sort of like saying Ireland isn't trustworthy enough for a Discover card.

The Republican plan to cut government spending by more than $60 billion dollars will cost the unemployment rate dearly, according to a new report from Moody's Analytics.

Moody's, the global credit rating scam agency, dropped Ireland's government bond rating five notches today from "Aa2" to "Baa1," which isn't good (at all)! Greece and Spain could soon feel the Moody's hammer, too. Sucks to be them!

S&P is so slick! The credit-rating agency has comically put rival Moody's on its watch list for a downgrade, replete with a lecture about how reform legislation (that applies to both firms) will devastate Moody's, only. Oh, it's on now.

Al Franken's tough financial reform amendment regulating credit-rating agencies has been stripped in favor of something far more draconian: regulators will "study the issue and take action only if they think it is necessary." Brutal! Moody's must be terrified.

Last year's financial collapse was made possible by the greed and incompetence of credit rating agencies, who got paid to lie about the value of subprime debt. It turns out they were responsible for the Goldman Sachs bailout, too.

• The AIG mess rolls on. Lawmakers are up in arms. Voters are pissed. Tim Geithner is on the defensive. President Obama's agenda has been disrupted. And AIG chief Ed Liddy will get to see some of the emotion first hand when he turns up on Capitol Hill later today to face the music. [NYT, WSJ, BN]
• Billions used to bail out AIG may end up benefiting the hedge funds that made big bets that the housing market was going to crumble. [WSJ]
• As the pressure mounts on Tim Geithner, here's a roundup of all the things he's gotten wrong, just in case you need a little refresher. [BI]
• The State of New Jersey has filed suit against Lehman for fraud. [CNN]
• Citigroup's chief economist is leaving the bank to take a senior position at the Treasury Department. Somehow this is entirely fitting. [DBK]
• The fact that Citi has four new board members may not bode well for Vikram Pandit and his chances of remaining in charge of the bank. [NYP]
• Warren Buffett owns 20% of Moody's, so when he talks about the broken financial system, you won't hear him talk much about rating agencies. [NYT]
• In the FT, Hank Paulson says it's time to reform the financial system. Thanks for sharing. And thanks for coming to that conclusion just now. [FT]

• Martha Stewart has sold a third of her shares in her eponymous media company. But she's still as anal as ever around the office. [NYP, Gawker]
• Bill Kristol's New York Times column has come to an end. [NYT]
• Fashion and beauty magazines will see a 22 percent decline in advertising pages during the first three months of the year. [WWD]
• Doubledown Media, the publisher of Trader, is reportedly up for sale. [NYP]
• Conde Nast is reorganizing its web division. [MW]
• Moody's has downgraded New York Times Co. debt to junk status. [NYP]
• A long Q&A between Lesley Stahl and Rachel Maddow. [Wow]
• Sundance ended yesterday without a big sale. [NYT]
• Once again, Paul Blart: Mall Cop was No. 1 at the box office. [THR]

• Federal prosecutors are investigating two ex-Credit Suisse brokers, Eric Butler and Julian Tzolov, over whether they lied to clients about their investments in auction rate securities. [WSJ]