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louiscarruthers
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Pissed off at S&P downgrade of US economy

August 16th, 2011, 3:59 pm

With all the artificial ratings inflation of asset backed securities that put us in this recession in the first place, you'd think they'd have the sense to at least maintain this corruption to help us get out of it, no???
 
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Traden4Alpha
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Pissed off at S&P downgrade of US economy

August 16th, 2011, 4:06 pm

The rating agencies aren't here to help us, they are here to sell ratings. Before 2008, selling ratings meant putting lipstick on pigs and declaring them AAA beauties. After 2008, selling ratings means showing prudence and caution.The psychology of these agencies is a direct reflection of the psychology of their customers.
 
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louiscarruthers
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Pissed off at S&P downgrade of US economy

August 16th, 2011, 4:26 pm

Good point, Mr. Crab. Thanks!
 
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DavidJN
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Joined: July 14th, 2002, 3:00 am

Pissed off at S&P downgrade of US economy

August 16th, 2011, 9:16 pm

T4A, I share your poor impression of the ratings agencies, what they did in the runup to the credit crises was shameful and I'm saddened to think that the US justice system hasn't put them firmly in the crosshairs. No other player in the housing/credit disaster has been put in the dock either, sadly.But you know, I agree with the US downgrade for a number of reasons. The military/industrial complex has spent the US into penury and the so-called ethical drug industry may just finish it off. Then you've got the blinkered idiots in Washington struggling with a political system that doesn't punish poor management but seemingly instead rewards it. Isn't the US the only western democracy that lacks a constitutional mechanism for the orderly removal of an ineffective executive?
 
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Gmike2000
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Pissed off at S&P downgrade of US economy

August 18th, 2011, 5:23 pm

i thought this mechanism exists in the US. it is called grand jury and was last used by republicans to oust bill clinton. they did not succeed, but it did set a precedent....
 
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DavidJN
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Pissed off at S&P downgrade of US economy

August 18th, 2011, 8:21 pm

I purposefully used the word ineffective, rather than criminal. Impeachment can be used when the US President stands accused of an indictable offense (in this case, perjury re. the Lewinski affair). I'm talking here about Presidents who just can't get things done. And interestingly, while Clinton was impeached he didn't leave office.In the British parliamentary tradition the government must retain the confidence of the upper house and if it suffers defeat on a money bill or a non-confidence motion an election normally results, as it did recently in Canada.
 
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BullBear
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Pissed off at S&P downgrade of US economy

August 19th, 2011, 10:03 am

QuoteOriginally posted by: Traden4AlphaThe rating agencies aren't here to help us, they are here to sell ratings. Before 2008, selling ratings meant putting lipstick on pigs and declaring them AAA beauties. After 2008, selling ratings means showing prudence and caution.The psychology of these agencies is a direct reflection of the psychology of their customers.They are following market spreads so they don't get caught again.
 
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TheNaif
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Pissed off at S&P downgrade of US economy

September 10th, 2011, 12:26 am

QuoteOriginally posted by: louiscarruthersWith all the artificial ratings inflation of asset backed securities that put us in this recession in the first place, you'd think they'd have the sense to at least maintain this corruption to help us get out of it, no???Don't you be worried they did exactly along your lines... with some lag... they fired the CEO of S&P. These days you can't even count on the government competence to maintain corruption at the level.
 
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exCBOE
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Pissed off at S&P downgrade of US economy

September 12th, 2011, 3:30 am

What does a rating of AA+ actually mean?
 
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list
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Pissed off at S&P downgrade of US economy

September 12th, 2011, 2:46 pm

QuoteOriginally posted by: exCBOEWhat does a rating of AA+ actually mean?a grading system represents a feeling that upper is better than lower. It is not a quantitative and could not be represented in numbers and therefore AA+ is worse than AAA and better than AA. Nothing more if one wish to use it accurately.
 
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slb
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Pissed off at S&P downgrade of US economy

September 23rd, 2011, 1:18 pm

This might shed a bit more light on what ratings represent, e.g. difference between probability of default and expected loss, etc.:http://blogs.reuters.com/felix-salmon/2 ... nd-moodys/
 
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DrDrawdown
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Pissed off at S&P downgrade of US economy

September 24th, 2011, 4:54 pm

QuoteOriginally posted by: slbThis might shed a bit more light on what ratings represent, e.g. difference between probability of default and expected loss, etc.:http://blogs.reuters.com/felix-salmon/2 ... nteresting point, but even though their method of calculation of the creditworthiness might be different. In the end they both need to go through committee and it's the 'seniors' who make a final vote to actually downgrade it or not.
 
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Traden4Alpha
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Pissed off at S&P downgrade of US economy

October 20th, 2011, 4:11 pm

How about a gag-the-messenger strategy to "solving" the debt crisis? Let's ban talking about credit ratings of dodgy sovereigns.