dagblog - Comments for "Idiocy and Ratings Agencies"

(No subject)

Verified Atheist — Sun, 15 Jan 2012 14:35:00 +0000

In reply to (No subject)

(No subject)

Michael Maiello — Sat, 14 Jan 2012 20:16:56 +0000

In reply to (No subject)

(No subject)

Richard Day — Sat, 14 Jan 2012 20:04:21 +0000

In reply to Idiocy and Ratings Agencies

I know, I know.

acanuck — Sat, 14 Jan 2012 05:52:55 +0000

In reply to Dude. Habs. WTF?

I know, I know.

To me, all of the actions

Michael Maiello — Sat, 14 Jan 2012 03:41:00 +0000

In reply to I heard a few weeks ago that

To me, all of the actions seem heavy handed, starting with downgrading the U.S.

I suspect that this is largely about image. The U.S.government made itself vulnerable by having a year-long, idiotic debate about the debt ceiling. When people say that the U.S., because it controls its own dollar, can "never default," they really mean, "can never default unless the system breaks so badly that it would do something stupid like default voluntarily, which is what a failure to raise the debt ceiling would have been.

So, S&P's analysts saw a reasonable opening to make history by downgrading the United States. And... they took it.

But, they didn't take it in context. France and Germany have similar debt problems and don't control the currency that they owe in. So, logic would suggest that they be downgraded first, or that all be downgraded at once. They didn't follow logic.

If you, as an investor, had followed S&P's logic, you would have sold all of your Treasuries in August and bought French bonds. Investors, apparently, are smarter than that and did the opposite.

But, I notice that the media has been largely silent about what Mel Brooks might have called "The French Mistake."

Dude. Habs. WTF?

Qnonymous — Sat, 14 Jan 2012 03:32:10 +0000

In reply to Yeah, like I'm going to lend

Dude. Habs. WTF?

I heard a few weeks ago that

Aunt Sam — Sat, 14 Jan 2012 03:25:09 +0000

In reply to Idiocy and Ratings Agencies

I heard a few weeks ago that there was an investigation into some of the S & P principals. Have you heard anything more lately?

I agree with your post - this action seems a bit, at the least, 'heavy-handed'. But, if so, why? Any thoughts, opinions?

Yeah, like I'm going to lend

acanuck — Sat, 14 Jan 2012 03:19:39 +0000

In reply to Idiocy and Ratings Agencies

Yeah, like I'm going to lend you two bricks of gold! I'm not falling for that again.