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They suddenly woke up & smelt the coffee!
http://www.bloomberg.com/apps/news?p...umnist_gilbert
Mike
http://www.bloomberg.com/apps/news?p...umnist_gilbert
Mike
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Re: Got this off Bloomberg
QUESTON : IS there anyone alive with the non political balls to make this call , USA AA+ ???David Walker, a former U.S. comptroller general, wrote in the Financial Times on May 12 that the U.S.’s top credit rating looks incompatible with “an accumulated negative net worth” of more than $11 trillion and “additional off-balance-sheet obligations” of $45 trillion. “One could even argue that our government does not deserve a triple A credit rating based on our current financial condition, structural fiscal imbalances and political stalemate,” he wrote.
No Default
It is undeniable that the U.S. government’s ability to finance its borrowing commitments has deteriorated as its deficit has ballooned. Dropping the U.S. from the top rating grade, though, wouldn’t mean the nation is about to default on its debt obligations; there’s a subtle distinction between ability to pay and propensity to fail to pay. There’s also a compelling argument that no government should be enjoying the benefits of a top credit grade in the current financial climate.
Or will the interest rates on treasuries do it for them ?? -
Re: Got this off Bloomberg
This stinks! You know why SandP, Moodys and Fitch aren't held accountable for rating all this securitized mortgage crap AAA is because the understanding is the government is going to get a pass.
The rating agencies who enabled a massive fraud have nary a whisper spoke in their direction by federal regulators who are afraid of getting their ratings cut. It just stinks...Comment
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Re: Got this off Bloomberg
Transiting through LHR5 this morning and the FTs front page headline is "Warning to Britain over high debt level...S&P raises possibility of ratings downgrade"Originally posted by icm63 View Post
Story states that S&P has lowered the outlook on the UK's debt to "negative" from "stable" based on a forecast that net government debt is approaching 100% of national income and threatens to stay that way. Goes on to say that other nations in the same situation, including the US, France and Germany, are also vulnerable to an S&P downgrade...
Edit added: Link to Largo's thread on the same item:
http://www.itulip.com/forums/showthread.php?t=9992Comment
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Re: Got this off Bloomberg
The 'sounds of inevitability' indeed. In recent months we have burned through so much received wisdom, contrarianism is becoming the new consensus. It if 'can't happen', it will. That's as good a rule as any.
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