Moody's lowers EU rating outlook to 'negative' • Hacker News Board

Re: Moody's lowers EU rating outlook to 'negative'

#11

Post by yarrel » Tue, Sep 04, 2012, 8:25 AM UTC

digitalengineer wrote: post #8

I think they're right. The EU as it stands today will certainly add to a deeper new recession. However: They are highly selective in their ratings. They focus on the EU and seem to 'forget' the US (and Great Britain). Both are also deeply in debt and both have no plans to even reign in their spending.

Even some previously supportive economists now think that the UK's current right-wing government need to refocus on encouraging growth. They won't, though. This is class war not economics.

The UK is part of the EU, although not part of the Eurozone (thanks, Soros!).

And the US is doing better than the UK to the extent that it is focussing on growth more than on tax cuts for the rich.

Re: Moody's lowers EU rating outlook to 'negative'

#12

Post by digitalengineer » Tue, Sep 04, 2012, 8:54 AM UTC

yarrel wrote: post #11

digitalengineer wrote: post #8

I think they're right. The EU as it stands today will certainly add to a deeper new recession. However: They are highly selective in their ratings. They focus on the EU and seem to 'forget' the US (and Great Britain). Both are also deeply in debt and both have no plans to even reign in their spending.

Even some previously supportive economists now think that the UK's current right-wing government need to refocus on encouraging growth. They won't, though. This is class war not economics. The UK is part of the EU, although not part of the Eurozone (thanks, Soros!). And the US is doing better than the UK to the extent that it is focussing on growth more than on tax cuts for the rich.

"Refocus on encouraging growth" is fine. Disturbing markets with political preferences for 'this or that' is not fine and will deepen the recession.

Re: Moody's lowers EU rating outlook to 'negative'

#13

Post by digitalengineer » Tue, Sep 04, 2012, 9:07 AM UTC

johnchristopher wrote: post #7

ghshephard wrote: post #3

Earlier quoted context omitted.

http://en.wikipedia.org/wiki/Nationally_Recognized_Statistic... What kind of organization is Moody's? - They are an NRSRO. Who watches them? Who made them qualified to issue ratings? "The U.S. Congress passed the Credit Rating Agency Reform Act of 2006, Pub.L. 109-291, 120 Stat. 1327, enacted September 29, 2006. This law required the SEC to establish clear guidelines for determining which credit rating agencies quali…

So if I read correctly it's a US organisation, controlled by the SEC, giving european countries, UE and other structured financed products (is that novlangue for "country" ?) a note to estimate the financial credit reserve of said products. Are there such european credit rating agencies giving notes to California or Kentucky ? We never hear about those on this side of the ocean :(

There are plans to set up European Agency's. Mainly to add balance to the US colored ratings.

For now you could also check the Chinese Rating Agency: "The Dagong Global Credit Rating Company, which lowered the United States to A+ last November after the U.S. Federal Reserve decided to continue loosening its monetary policy, announced a further downgrade to A, indicating heightened doubts over Washington's long-term ability to repay its debts." http://edition.cnn.com/2011/BUSINESS/08/02/china.us.rating/i...

Funny, communists lowering a credit rating because it's too socialist (Keynes and loose money policy).