Eternal trade deficit, scam, no infrastructure, no water policy, 60 years no character, no policies.nations that are disciplined alone shine others decline as UK,US.
Rating agencies do not run by government funds. They make money from private parties and that in term create their alliance with them more important that the truth.
Why did they gave AAA rating to junk mortgage-related securities? Simple, most financial institutes were minting money using these securities and they wanted to continue doing that as long possible. So credit rating agencies played along with them and kept the AAA rating till the meltdown. Simple, business is about making profit, and whoever gives most profit is the one going to get the best service.
Why did they downgraded US rating? Simple, now banks wants to make more money by higher interest rates. Lower credit rating means, financial institutes can charge higher rates to customer, specially since they have money in their vault so they will not be required to borrow it anymore to lend. So while they already recovered their lost money and have already started to make more money, they now want to lend at higher rate and the best way to do that, without being accused of manipulating the market is by making it look like the child of changed scenario. Otherwise if you look at the basis of credit rating, it should be ability of paying back the loans, which US is well capable of. Also china might also have played some role in this, as they also wants to charge higher interest, specially since they are in better position financially but their market has started to show the signs on slowdown.
Re: Its all business...don't take it personally
by Ishaqk on Aug 12, 2011 07:14 AM
While I am was working for top IT firm during 1990s, a top IT magazine editor came to my me and said : If my magazine want to publish this article about you then give 10 Lakhs, the second article for 5 lakhs and the 3rd one then 2 lakhs. The lakhs were proportional to the praising they shower on us.
Re: Re: Its all business...don't take it personally
by mohammed ulhaq on Aug 13, 2011 04:26 PM
That publisher would not have asked money if you wud have known english.
S & P was taken for granted as a semi-govt agency playing to the tune of the treasury boss and Ben who in turn take orders from Oval.
Suddenly Sharma realized that are an independent body and they should evaluate the monstrous economy of the US accordingly.
The reduction of one A ought to have been taken place much earlier. There were ample evidence when they involved themselves in Afghan war. There was more than enough evidence when they invaded Iraq.
The mess that the US is in today is the sole and exclusive responsibility of Barack\'s predecessor who ruled the nation more like a demon than a responsible world leader.
He assumed the entire plant we call The Earth belonged to his grandfather and that it was his personal property.
His boundless adventures have landed the US into the situation it is in today.
If they are sinking they have no right to take along with them the rest of the world. They must find a way out acceptable to the rest of the world, including getting back to the gold standard and devaluing their dollar accordingly.
The world will of course destablize temporarily but a new and more durable and practically honest solution acceptable globally would definitely emerge rather than applying patches and live in a dilapidated economies globally.
America must accept the whole truth and compromise accordingly rather than risking a global upheaval and continuous tattering of the world markets.
S & P was taken for granted as a semi-govt agency playing to the tune of the treasury boss and Ben who in turn take orders from Oval.
Suddenly Sharma realized that are an independent body and they should evaluate the monstrous economy of the US accordingly.
The reduction of one A ought to have been taken place much earlier. There were ample evidence when they involved themselves in Afghan war. There was more than enough evidence when they invaded Iraq.
The mess that the US is in today is the sole and exclusive responsibility of Barack's predecessor who ruled the nation more like a demon than a responsible world leader.
He assumed the entire plant we call The Earth belonged to his grandfather and that it was his personal property.
His boundless adventures have landed the US into the situation it is in today.
If they are sinking they have no right to take along with them the rest of the world. They must find a way out acceptable to the rest of the world, including getting back to the gold standard and devaluing their dollar accordingly.
The world will of course destablize temporarily but a new and more durable and practically honest solution acceptable globally would definitely emerge rather than applying patches and live in a dilapidated economies globally.
America must accept the whole truth and compromise accordingly rather than risking a global upheaval and continuous tattering of the world markets.
S & P was taken for granted as a semi-govt agency playing to the tune of the treasury boss and Ben who in turn take orders from Oval.
Suddenly Sharma realized that are an independent body and they should evaluate the monstrous economy of the US accordingly.
The reduction of one A ought to have been taken place much earlier. There were ample evidence when they involved themselves in Afghan war. There was more than enough evidence when they invaded Iraq.
The mess that the US is in today is the sole and exclusive responsibility of Barack's predecessor who ruled the nation more like a demon than a responsible world leader.
He assumed the entire plant we call The Earth belonged to his grandfather and that it was his personal property.
His boundless adventures have landed the US into the situation it is in today.
If they are sinking they have no right to take along with them the rest of the world. They must find a way out acceptable to the rest of the world, including getting back to the gold standard and devaluing their dollar accordingly.
The world will of course destablize temporarily but a new and more durable and practically honest solution acceptable globally would definitely emerge rather than applying patches and live in a dilapidated economies globally.
America must accept the whole truth and compromise accordingly rather than risking a global upheaval and continuous tattering of the world markets.
The fact that the credit rating agencies messed up the subprime bonds issue does not mean that their judgment on US government bonds is wrong. We should commend S&P on learning from past mistakes
It does not need any great financial engineering to conclude that the US government will not be able to repay its debt of over 14 trillion dollars unless they learn to live within their means. Far from that the US politicians are quibbling over whether to cut expenses or raise taxes. The fact is that they need to do both and even that may not be enough
None of the economists objected when countries of South East Asia were downgraded in 1997 to junk status despite their debt levels being much lower
Credit rating is all about ability to repay your debt. China has reserves equal to at least five times its debt which means that it can repay all its debt immediately if necessary. Then how is it that China has a credit rating lower than that of US whose debt is 100 % of its GDP and whose reserves including gold are barely 15 % of its debt
For once the credit rating agencies have got something right. While commending them on that it needs to be pointed out that AA is too good a level for a debtor who has forgotten that he is in debt and is trying to dictate terms to his creditors.
stop purchase of all arms and annumations from USA they will come to streets and beg to purchase missiles, warships made for india and pak to fight so please wake up friends keep on fighting so that we will help usa made weapon market to survive at the cost of million innocent asians?
Re: USA will be turn bankrupt of indian and parkistani refuse 2 f
by Rahul on Aug 11, 2011 01:41 PM
Most of the people in USA might not be know the exact location of India.
Although I don't wish to be derogatory; but we can't even make a good engine for Car on our own. What to talk of high tech equipment; or even medicines.
I saw the movie Inside Job and I was amazed to see that all the junk that was rated as AAA by the rating agencies. Why are these people not in jail? In fact all the money they made was also tax exepmt in some cases. At least India should shun these agencies and not allow them to operate in India or to comment on India.
