US credit rating downgraded - by China!

[Bluesky]

http://www.zerohedge.com/article/us-...ratingby-china

Ever since the mortgage certificate fiasco that plunged the world into economic crisis, the Moody credit rating service has been suffering from a terrible lack of credibility. It was Moody's that gave the mortgage derivatives a triple A rating, when in reality there was little to no security behind these mortgage loans and credit default swaps that were being issued by Goldman Sachs and oother financial houses.

So China has started its own rating agency. It will be interesting to see who investors will listen to. The power centers are shifting.

[NewCasa]

Gosh and here I thought you'd be the one person who was above winger-baiting

[Bluesky]

I am not winger baiting. I am very interested in this topic because I just recently read the book, "Big Short" by Lewis. I would think that most Americans want to see some kind of housecleaning on Wall Street.

[Soundbear]

...... I would think that most Americans want to see some kind of housecleaning on Wall Street.

I wonder. As evidenced here, I wonder if most americans aren't so entranced by their own military and economic power that they can't concieve of an economic crash.

Which will make the end that much more bitter, and deadly.

[KDawg]

The Chinese rating agency has issued their numbers:

Dagong Global Credit Rating Coused its first foray into sovereign debt to paint a revolutionary picture of creditworthiness around the world, giving much greater weight to "wealth creating capacity" and foreign reserves than Fitch, Standard & Poor's, or Moody's. The US falls to AA, while Britain and France slither down to AA-. Belgium, Spain, Italy are ranked at A- along with Malaysia.

Meanwhile, China rises to AA+ with Germany, the Netherlands and Canada, reflecting its €2.4 trillion (£2 trillion) reserves and a blistering growth rate of 8pc to 10pc a year.

Dominique Strauss-Kahn, chief of the International Monetary Fund, agreed on Monday that the rising East is a transforming global force. "Asia's time has come," he said.

"The reason for the global financial crisisand debt crisis in Europe is that the current international credit rating system does not correctly reveal the debtor's repayment ability," said Guan Jianzhong, Dagong's chairman.

http://www.telegraph.co.uk/finance/c...AA-status.html

Given the level of debt that western countries are carrying, I think Mr.Jianzhong's statement is bang-on.

[R W G R]

Who cares who sets the credit rating, as long as it's a sound policy.Much of the finances we use today are based on an old system of finance, created for a very different world.

Change can be healthy.

Now, back to counting how many new Protestant denominations have been created since the start of the week...

[R W G R]

Gosh and here I thought you'd be the one person who was above winger-baiting

That's cute. You're a dying breed; one of the few that believe the false facade Sky presents in here.

[NewCasa]

That's cute. You're a dying breed; one of the few that believe the false facade Sky presents in here.

Actually I know Blue fairly well and I've yet to see anything at all false about him. You on the other hand - well I just hope the facade you present here is false - for your own sake.

[Hans]

[QUOTE=R W G R;586105]Who cares who sets the credit rating, as long as it's a sound policy.Much of the finances we use today are based on an old system of finance, created for a very different world.

Change can be healthy.

Now, back to counting how many new Protestant denominations have been created since the start of the week...[/QUOTE

Oh the anger.