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View Diary: Market Humiliates S&P — Rejects Downgrade (266 comments)

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  •  Right (1+ / 0-)

    S&P got it just right.

    You are full of it sir.

    •  Room for shades of grey? (0+ / 0-)

      I did not say S&P got it just right.  I said that S&P's rating still includes the US debt in the group of investment-grade securities.  And it's right up there near the top.  It just isn't the very tip-top, since other countries with good economies and functional governments are relatively more reliable.  In that respect, I think the S&P is probably about right to rate US debt a tiny notch lower than that of a few other countries.

      According to this (Sept 2010) wiki article, in order, Norway, Switzerland, Sweden, Denmark, Finland, Luxembourg, Canada, Netherlands, Hong Kong, and Australia make up the top 10 highest rated sovereigns.  We don't spend much time talking about them, because they are relatively puny.
      http://en.wikipedia.org/...

      No on Prop 8::Sometimes I get to hitch a ride on the Democratic Bus--they let me stand on the back bumper.

      by steve04 on Mon Aug 08, 2011 at 01:03:39 PM PDT

      [ Parent ]

      •  France (0+ / 0-)

        is what?

        Sorry, you're arguments are not convincing.

        S&P is rightly being jeered today

        •  HLMGTFY (0+ / 0-)

          Honestly, I am surprised you don't know France's rating if you've been arguing with such ferocity and so many absolute statements. France is rated AAA.

          http://en.wikipedia.org/...

          Japan is AA-, two notches below the USA's new AA+ rating.  Japan has a lot of good things going for it, but it does have a lot of debt and a weak economy.

          Kuwait is an AA.  Off the top of my head, I'd guess Kuwait doesn't get AAA because it's between Saudi Arabia and Iraq.  They certainly aren't short of cash, but their physical location is risky.

          South Korea is several notches lower, at A.  Again, I suspect that's a physical location risk thing rather than a purely financial risk rating.

          New Zealand is AA+, like the USA.  I don't know why they aren't AAA, but they're an example of a first-world economy that isn't AAA.

          Argentina, which defaulted several years ago, is rated a "B."  That's below the BB and BBB tiers, as well as the A, AA, and AAA tiers.

          No on Prop 8::Sometimes I get to hitch a ride on the Democratic Bus--they let me stand on the back bumper.

          by steve04 on Mon Aug 08, 2011 at 01:16:03 PM PDT

          [ Parent ]

          •  I did (0+ / 0-)

            I'm surprised you did not recognize my sarcasm.

            I am done with this discussion.

            •  Ahh, I get it. (0+ / 0-)

              France is the single anecdote, based on debt to GDP, that is being used to illustrate how universally wrong S&P is.  Perhaps France should also be AA+ rather than AAA.  I haven't made a study of it, but I do know that the S&P ratings are based on the complete picture, not just debt to GDP.  France has much better infrastructure.  Unemployment is very slightly worse than ours.

              Italy has an A+ rating, a higher debt to GDP ratio, and Berlusconi in charge.

              http://en.wikipedia.org/...

              No on Prop 8::Sometimes I get to hitch a ride on the Democratic Bus--they let me stand on the back bumper.

              by steve04 on Mon Aug 08, 2011 at 01:58:33 PM PDT

              [ Parent ]

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