U.S. likely to lose AAA rating before 2011: Prechter

[LargoWinch]

Re: U.S. likely to lose AAA rating before 2011: Prechter

Thanks MM, I will stay away.

Not that I wander very far from iTulip anyway, as this simple action has proven to preserve my good financial health (the little I have at least).

[D-Mack]

Re: U.S. likely to lose AAA rating before 2011: Prechter

Playing The Ratings Game

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Despite the positive spin from the firms, other industry observers remain skeptical about the model ratings agencies have evolved. Ken Shubin Stein, the head of hedge fund Spencer Capital, agrees with Weiss that the marketplace can sort through the problems in the ratings agency world if Congress opens up the system and give its official seal to more firms with less obvious conflicts.

"These are companies that had legislated competitive advantages," he said. "But because of these conflicts and because of greed they prostituted themselves. They sold their seal of approval to the highest bidder." One notable exception, he says, is the Egan-Jones Rating Company, which is paid by the client, not issuer, side.

...

http://www.forbes.com/2009/08/10/rat...-interest.html

Should the U.S. Lose Its AAA Rating?


Still, some smaller rating agencies have already lowered their U.S. rating. Egan-Jones Group actually removed the AAA rating from U.S. debt four years ago, well before the current crisis in financial markets prompted trillions in government bailouts. (now Egan-Jones on the other hand is considered a realistic agency who actually warned of much of the carnage that was to come. Funny how the one who warned of the hell that was to break out in our financial situation is also agreeing with the very obvious conclusion... while the major credit agencies do their usual. And this was 4 YEARS ago before all the new obligations) "There is little doubt that the obligations of the U.S. government have risen faster than their means to absorb those obligation," said Sean Egan, the firm's managing director.

http://seekingalpha.com/article/1284...its-aaa-rating

Looks like one small firm did downgrade the US, I don't know much about them.

[thedanimal]

Re: U.S. likely to lose AAA rating before 2011: Prechter

Looks like one small firm did downgrade the US, I don't know much about them.

Wow...can we get an interview with someone from Egan-Jones Group? Obviously ahead of their time.