Stocks fall on concern about US credit rating

uscitizen

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Stocks fall on concern about US credit rating

Mar 15, 11:06 AM (ET)

By STEPHEN BERNARD and TIM PARADIS


NEW YORK (AP) - Concerns about China's economy and a warning about the U.S. credit rating hit stocks.

Credit ratings agency Moody's said Monday that debt loads are stretched in the U.S. and Britain. The countries carry the top "AAA" rating. And a drop in the rating would make it more expensive for the government to borrow money.

My Way News - Stocks fall on concern about US credit rating

btw this is the very same Moodys that gave low risk ratings to the junk securities that pretty much triggered the recession.
 
And the same Moody's that has given hundreds of thousands of ratings to all kinds of other things and been right every time.
How is Obama going to deal with an AA rated U.S.? His solution seems to be throw more money at it.
He is weakening this country every day.
 
And the same Moody's that has given hundreds of thousands of ratings to all kinds of other things and been right every time.
How is Obama going to deal with an AA rated U.S.? His solution seems to be throw more money at it.
He is weakening this country every day.

You of course have a link with moody's accuracy stats?
 
And the same Moody's that has given hundreds of thousands of ratings to all kinds of other things and been right every time.
How is Obama going to deal with an AA rated U.S.? His solution seems to be throw more money at it.
He is weakening this country every day.

You of course have a link with moody's accuracy stats?

No. You?

Ohh I can easily round up a few articles on how they screwed the pooch on the mortgage instrument package ratings.

Can you on the rest?
 
Put out or shut up.

What I stated on how the mis rated the mortgage packages is common knowledge, your statement is not.
 
Put out or shut up.

What I stated on how the mis rated the mortgage packages is common knowledge, your statement is not.

What a laugh and a half you are.
You claim that Moody's warning about the US debt rating is worthless because their rating system is suspect. The only proof you offer is well known cases where they failed to rate some mortgage securities properly. That has zero to do with sovereign debt ratings, which was the subject of your rant (I can't call anything you write a post). When challenged to find evidence that actually supports what you wrote you throw the burden on me.

You're an idiot. Case closed.
 
btw I made a donation to Hati a few days ago and they offered me a free voodoo curse for the person I chose. I chose the Rabbi.

Enjoy.
 
And the same Moody's that has given hundreds of thousands of ratings to all kinds of other things and been right every time.
How is Obama going to deal with an AA rated U.S.? His solution seems to be throw more money at it.
He is weakening this country every day.

I sincerely doubt that we'll ever see any drop in the rating.
 
The ratings agencies are very careful to downgrade prior to collapse, which is why only two investment grade securities (BBB or better) have ever defaulted while they were investment grade. The ratings agencies pull this off by downgrading fast and massively, AAA to C downgrades without intervening steps hours to a few weeks prior to default were reported when the housing bubble burst. So in principle US Citizen may be right, technically and legally Rabbi is. Kind of sucks that these types of scams work.
 
Well, US and Rebbi, I am sure glad that I have never studied ECONOMICS in college. The only Economics that I know is common sense Economics. I know that we are largely a Service Sector economy (70 percent) so it stands to reason that rising unemployment would effect the service sector to the negative and hurt the economy. When all of the newscasters were saying that Unemployment is a lagging indicator in a recovery, I plastered the message boards with what I considered a very logical statement, "In a service sector rising unemployment is a leading indicator of economic collapse." I immediately received three emails from major networks asking who I was quoting, and I told them, "ME." It surprised the sheet out of me that "THAT REALITY" had never occurred to economists before.

Apparently they only parrot what they have learned in school and nobody knows how to think on their own. Shame that. Economists are supposed to be smart people. Moody's is not perfect, but they do a pretty good job. You two guys need to stop arguing about Moody's and start worrying about how we are going to fix the economy. Right now, we are tanking and I see no let up in the momentum.
 
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And the same Moody's that has given hundreds of thousands of ratings to all kinds of other things and been right every time.
How is Obama going to deal with an AA rated U.S.? His solution seems to be throw more money at it.
He is weakening this country every day.

I sincerely doubt that we'll ever see any drop in the rating.
As long as we do most of our borrowing from the Fed at Zero Interest, we are home free. I keep on telling people that the Fed is the best thing since sizzle on steak since they deposit our interest payments in the Treasury. Some how this does not register with the nincompoops who have studied economics. I look at the reality and say that is fantastic. Economists look back in the economics books and say it is bad to borrow too much.

Hummmmmm? If you are not paying interest on it, then it is a darn good deal. Right? The Fed is an unlimited source of money.
 
One of the world’s top credit rating agencies warned in a report released Tuesday that the U.S., along with Britain, France, Germany and Spain, could be in jeopardy of losing its triple-A rated creditworthiness.

[moody s investors service ... ] In its quarterly report, Moody’s Investor Service said that the U.S.’s credit rating is not in imminent danger, however, Washington’s margin for error is shrinking. If the U.S. does not begin to better manage its debt problems, its could be facing a credit downgrade in the near future.

France, Spain and Germany are in the same boat as well. But, Britain and the U.S. face the most precarious situations because of debt concerns.



U.S. Close to Ratings-Downgrade Danger Zone | Economy In Crisis
 
One of the world’s top credit rating agencies warned in a report released Tuesday that the U.S., along with Britain, France, Germany and Spain, could be in jeopardy of losing its triple-A rated creditworthiness.

[moody s investors service ... ] In its quarterly report, Moody’s Investor Service said that the U.S.’s credit rating is not in imminent danger, however, Washington’s margin for error is shrinking. If the U.S. does not begin to better manage its debt problems, its could be facing a credit downgrade in the near future.

France, Spain and Germany are in the same boat as well. But, Britain and the U.S. face the most precarious situations because of debt concerns.



U.S. Close to Ratings-Downgrade Danger Zone | Economy In Crisis



".... "We believe that the ratings of all large AAA governments remain well positioned -- although their 'distance-to-downgrade' has in all cases substantially diminished," the report says.

Moody’s estimates that the U.S.’s interest payments on the general government debt could reach over 10 percent of revenue by 2013. Typically that is the around the range that downgrade discussions seriously begin. "
 

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