• 03 Aug 2009 at 4:20 PM

The Next Headache From The Rating Agencies

By

Headache.jpgAs global regulators continue to prove their impotence when it comes to dealing with the rating agencies, Moody’s and S&P are trying to threaten their way back to legitimacy. With no alternatives and an inexplicable continued reliance on ratings from the dynamic duo, a second round of RA-based damage is creeping closer. Having convinced many investors currently holding AAA-rated structured products valued at less than 50 cents on the dollar that their holdings were safe to sleep on at night, the agencies are seeking to redeem themselves by threatening sovereign downgrades.
Following up on the warning shot fired across the UK’s bow several months ago by S&P, Moody’s put Ireland, Kuwait Estonia, Latvia and Lithuania on notice that should their interest rates (adjusted for inflation) start taking off, the sad trombones will start playing. Showing just how far they’ve come in the past year, Moody’s also took the opportunity to bring the hammer down and knock two of AIG’s lending units down to a still investment-grade Baa3.

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    Comments (15)

    1. 1
      Posted by guest | August 3, 2009 at 4:20 PM

      Gregory is on a roll, however, tldr.

    2. 2
      Posted by guest | August 3, 2009 at 4:26 PM

      In the absence of any good posts today, how about a good fat rant by someone out there?
      http://www.youtube.com/watch?v=2VwbaDHAFzo

    3. 3
      Posted by Tax Chick | August 3, 2009 at 4:29 PM

      @2 what is it with fat chicks and belly dancing?!

    4. 4
      Posted by guest | August 3, 2009 at 4:33 PM

      Fat = Tax

    5. 5
      Posted by EvilBuzzard | August 3, 2009 at 4:39 PM

      Given their fundamental reliability, why would sovereign agents care any longer what their Moody’s score happens to be?

    6. 6
      Posted by Anal_yst | August 3, 2009 at 4:39 PM

      Someone, anyone, please save us all and commit to at least a vending machine challenge this week!

    7. 7
      Posted by guest | August 3, 2009 at 4:41 PM

      it’s funny -I made the same gesture as the floor trader in the pic after reading the first sentence of this post…

    8. 8
      Posted by guest | August 3, 2009 at 4:42 PM

      Keeping it topical:
      I think Tax Chick is Phat
      - just sayin’

    9. 9
      Posted by amsat | August 3, 2009 at 4:43 PM

      Yes i think so,that’s the next problem..
      Todd DiRoberto
      http://www.newsguide.us/art-entertainment/movies/Todd-DiRoberto-of-American-Satellite-Hosts-Independence-Day-Charity-Event-for-Operation-Bigs/

    10. 10
      Posted by guest | August 3, 2009 at 4:46 PM

      Out from the cave I wonder whether we are going to get an update of the Obama Portfolio, even though EP went AWOL more than 3 hours ago.
      …sounds of crickets chirping…

    11. 11
      Posted by guest | August 3, 2009 at 4:57 PM

      Use of “sad trombone” does not a Levin post make.

    12. 12
      Posted by guest | August 3, 2009 at 5:06 PM

      what’s with the first three sentences having long dependent clauses?
      such awkward writing…

    13. 13
      Posted by guest | August 3, 2009 at 5:27 PM

      Nrrrrggggggggg
      Fatties dancing seared into my retinas. So much pain.

    14. 14
      Posted by guest | August 3, 2009 at 5:28 PM

      Greg, you suck at this blog thing.
      That’s ok. Not everyone is supposed to do this job. Don’t feel ashamed when you plan to go into another line of work.

    15. 15
      Posted by guest | August 3, 2009 at 11:20 PM

      This post is completely incomprehensible.

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