Thursday, November 11, 2010

P.S. Ratings Agencies Are Still Worthless

Moody's says that they are waiting to review Ireland’s fiscal plan later this month before deciding whether to downgrade the country’s credit rating.

There's nothing to review.

When a country's sovereign debt yields are rising 70 bps in one day, and the largest banks' debt is trading with points upfront, it's over. The market has spoken.

Even the Norwegians (normally clueless and hopelessly naive about world affairs) are shying away from junk debt.


billmasi said...

Can you give an example of clueless?

Of Hopelessly naive?

CP said...

No offense meant. I'm actually sad that Norway has no love for its people in the diaspora. (There are more Norwegian-Americans than actual Norwegians!)

Just one example for now, let me know if you need more - Norway criminalizes criticism of the invading Muslim hordes.