Friday, September 26, 2008

Question of The Day?

With the massive bailout bill soon to be law allowing all of Wall Street’s junk assets (mortgage, HELOC, credit-card, auto, school debt securities) being neatly shifted to the federal government’s balance sheet, when will the United States lose its triple-A credit rating?

2 comments:

  1. Never. The ratinga gencies are all rigged. The way the rating agencies have been working lateley, Zimbabwe would have a "AAA" rating. Those clowns gave high ratings to the junk paper that caused this problem!

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  2. Dagger11:57 AM

    Phil's right. The failures of Moody's and S&P are a big part of the current crisis. They have built their business on conflict of interest, and that has led to their corruption.

    But in any case a govt can never lose its AAA rating for bonds issued in its own fiat currency. It never has to default because it can create money from nothing. Start to worry when we're borrowing yuan and euros.

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