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Re: Moodys Nukes CA !
Whats scary is current US policy under BHO is leading us in the same direction. -
Re: Moodys Nukes CA !
NO austerity programs for the US Huh?Originally posted by Mega View Post
Sure as hell looks like it to me.Comment
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Re: Moodys Nukes CA !
Could someone please explain to me the point of Moody's? Perhaps I'm just a complete moron, but it would seem to me that a credit rating should be useful in making decisions about whether to issue a loan to an entity. If this is the case, then why is the reduction from the maximum credit rating an event that occurs only after it is completely obvious to everyone that said entity is an enormous credit risk?
It's like a time-delayed weatherman.
[On Friday:]
"Tomorrow's forecast is sunny, but partly cloudy with a slight chance of rain."
[Saturday afternoon, three hours after the hurricane destroyed your house:]
"Storm warning on the horizon. Consider seeking shelter in the near future."Comment
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Re: Moodys Nukes CA !
No, no, no. You misunderstand. The point of a ratings agency is to help facilitate sales of debt, not to protect the lenders!Originally posted by Ghent12 View PostComment
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Re: Moodys Nukes CA !
http://zerohedge.blogspot.com/2009/0...#disqus_threadA downgrade of Cali would set off a chain of events, that will not only trash the ratings of virtually all other states, resulting in a skyrocketing of the MCDX, and major pain for associated index arbs, but also impair insurance companies directly and indirectly, with a final outcome likely being comparable to the Lehman blow up, however more protracted and, ultimately, more pronounced. And instead of confronting the problem head on and possibly finding way to resolve the state funding crisis before it is too late, the administration, day in and day out, keeps its head in the sand, pretending that things are getting better when in fact the economy is collapsing. In three months, when California "pays" all its vendors with IOUs and state refunds are indefinitely delayed into the next decade, any mention of 'green shoots' with just come from Dick Bove, who will likely issue a Strong Buy rating on Sacramento despite "horrific" mass hysteria and bands of roving Mad Max copycats coasting along I-5 at 120 mph in nitrous-retrofitted China-made Hummers
can anyone explain why this might cause a domino effect?Comment
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Re: Moodys Nukes CA !
I don't post often. But this is the shit that dirves me crazy.
The rating agencies are the main reason for the crisis and they are the reason for making it worse.
Before the crisis they are like, okay "I like easy money, I will rate that 'no doc jumbo neg am' AAA"
Now after the crisis, and now that everyone is pretty much f'd "Wait, we are a very trustworthy company with only the utmost, very strigent criteria, that's always been our long principle. By the way sorry you are f'd california, oh by the way yeah the rest of you states, f'd as well"
What the? You want to put an end to the credit crisis, you put an end to these morons. Everyone knows their ratings are junk, but somehow, they dictate market. So F' them F' them F' them.
I live in this country and I am pissed. For god sakes abolish any "for profit" rating agency. A "for profit agency" will always be corrupted by definition.
Get a non partial non profit rating agency. Get a non profit represented by the 50 members of all the 20 of the members of the G20 and let them rate securities annomously. There is a way to do it, DO IT NOW, because this bullshit is got to end. Investors want it and will not enter the market without it. A system can easily be set up to allow 50 CFA's or CPA's from each country to annomously rate securites without those individuals ever knowing the security issuing companies name, and therefor no way to get a handout nor feel coerced to pull a AAA out of their single A double ASS.
That is what investors want, that is what the world deserves.
End the crisis, end it now.
I am not going through hyperinflation because Moody's suddenly has a conscience and or sees there own credit rating go down the sewerhole. They cannot just move forward on an effort at legitimacy.
They are scumbags, just like WAMU and Wachovia pushing OptionARMS on fixed income wage earners the whole way through. You want a land grab, they got it. It was a no lose situation with the fractional system they either got a huge market share and profits, OR at the very worst they got a enormous land grab through foreclosure and taxpayer bailout. How else did you expect these bastards to steal americas real asset "real estate" from the people. If people need to burn soon its the CEO's of Wachovia, WAMU, Lehman (ninja loan master), Moody's, Fitch and S&P.
So to me they are dead, rot in hell
Risk equals reward Finance 101. The only reason we are in this crisis is because risk was not appropriately rewarded.
There is always room for junk bonds in a market, just not junk bods rated AAA. And you can't sell them to the people who buy our treasuries, sorry there is going to be backlash.
Moody's and their bitches helped sell the toxic worldwide, now the world doesn't want to give us another chance so they are selling our treasury bonds while our inbred politicians think we need to print more, and the world wants more. What IQ scores do we have?
Now these Moody bastards are going to try to wipe their hands clean with sensable ratings after every state and citizen is Chapter 7?
I better hope our superiors have an ace in the hole, a change in currency, a basket of commodities, a PM backed currency, a something, cause it doesn't feel warm where I am at.
I smell trash, scum, filth. Those guys at the ratings agencies need to look themselves in the mirror and go home and tell their family they are a failure, and they are not going to work for that company anymore. Tell their superiors that they are not training anyone until our government changes regulations on the credit agencies, and make them nonpartial, nonprofit.
The world is f'd until foreign investors feel like they have a seat at the table of these rating agencies.
/ sukitComment
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Re: Moodys Nukes CA !
The article mentions that CA has the lowest rating of all states A2Originally posted by Ghent12 View PostComment
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Re: Moodys Nukes CA !
Yeah, they are marketing agencies. They are paid by the originators.Originally posted by Sharky View PostIt's Economics vs Thermodynamics. Thermodynamics wins.Comment
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Re: Moodys Nukes CA !
Ah, thanks for the brief and concise explanation. It seems that common sense can be applied to anything to find the truth.
I am a layman in economics; most of my self-education about it comes from drinking Peter Schiff kool-aid. I try to challenge my own assumptions as often as is practicable, but I have yet to find a more cogent or reasonable argument for economics than the libertarian one.Comment
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Re: Moodys Nukes CA !
Could this be the signal that the end is nigh?
If CA defaults or similar by Monday, they can blame Moodys for precipitating the crisis . . . whch in a way would be true . . .Justice is the cornerstone of the world
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Re: Moodys Nukes CA !
if i'm wrong, it matters if moody's downgrades cali... but i'm telling you no one gives a shit what ratings agencies say anymore. markets rate bonds now not corrupt ratings agencies... that's over.Comment
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