Comments on: The US triple-A: Nothing to worry about http://blogs.reuters.com/felix-salmon/2009/05/21/the-us-triple-a-nothing-to-worry-about/ A slice of lime in the soda Tue, 18 Jun 2013 21:59:52 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: Bud Woods http://blogs.reuters.com/felix-salmon/2009/05/21/the-us-triple-a-nothing-to-worry-about/comment-page-1/#comment-1883 Bud Woods Sat, 23 May 2009 10:33:00 +0000 http://blogs.reuters.com/felix-salmon/2009/05/21/the-us-triple-a-nothing-to-worry-about/#comment-1883 Hey boys & girls out there in radioland, I just want to remind you that all this hyper-spending by the radical left that is now running Washington, et al, WILL be paid for eventually - by Inflation & Higher Taxes! The public will have to guess how much of each is required and plan their investments accordingly. I say guess because nobody in the Obama-Geithner-Bernanke gang has a clue either. Hey boys & girls out there in radioland, I just want to remind you that all this hyper-spending by the radical left that is now running Washington, et al, WILL be paid for eventually – by Inflation & Higher Taxes! The public will have to guess how much of each is required and plan their investments accordingly. I say guess because nobody in the Obama-Geithner-Bernanke gang has a clue either.

]]> By: Richard McCallister http://blogs.reuters.com/felix-salmon/2009/05/21/the-us-triple-a-nothing-to-worry-about/comment-page-1/#comment-1848 Richard McCallister Fri, 22 May 2009 14:59:55 +0000 http://blogs.reuters.com/felix-salmon/2009/05/21/the-us-triple-a-nothing-to-worry-about/#comment-1848 A sorry, sophmoric article. You say ratings don't matter? I disagree--they are a backward looking indicator. They don't matter to people who want a prospective understanding of credit health. But when you've been downgraded (or on watch), the rating agency is capitulating to the truth everyone else already knows. They take this "conservative" approach, and help no one with their credit analysis. So yes, the downgrades matter: it's the last nail in the coffin of once-healthy credit. A sorry, sophmoric article. You say ratings don’t matter? I disagree–they are a backward looking indicator.

They don’t matter to people who want a prospective understanding of credit health. But when you’ve been downgraded (or on watch), the rating agency is capitulating to the truth everyone else already knows. They take this “conservative” approach, and help no one with their credit analysis.

So yes, the downgrades matter: it’s the last nail in the coffin of once-healthy credit.

]]> By: Joe http://blogs.reuters.com/felix-salmon/2009/05/21/the-us-triple-a-nothing-to-worry-about/comment-page-1/#comment-1840 Joe Fri, 22 May 2009 13:21:56 +0000 http://blogs.reuters.com/felix-salmon/2009/05/21/the-us-triple-a-nothing-to-worry-about/#comment-1840 What a ridiculous post. Reuters should quit this blogging stuff else they will lose credibility as a news services agency. Looking at a one day one percent drop in the market is not the way to look at the slow crash we have had since october of last year. And don't be so sure about liquidity of US treasury. Just because there is plenty of supply in the pipeline doesn't mean there will be buyers. What is liquid one day can be illiquid overnight. Look at the securitized markets, and no there is nothing special about the US treasury anymore as we are broke as far as the eye can see. Only buyers soon will be the Fed. What a ridiculous post. Reuters should quit this blogging stuff else they will lose credibility as a news services agency. Looking at a one day one percent drop in the market is not the way to look at the slow crash we have had since october of last year. And don’t be so sure about liquidity of US treasury. Just because there is plenty of supply in the pipeline doesn’t mean there will be buyers. What is liquid one day can be illiquid overnight. Look at the securitized markets, and no there is nothing special about the US treasury anymore as we are broke as far as the eye can see. Only buyers soon will be the Fed.

]]> By: dazedandconfused http://blogs.reuters.com/felix-salmon/2009/05/21/the-us-triple-a-nothing-to-worry-about/comment-page-1/#comment-1838 dazedandconfused Fri, 22 May 2009 13:13:15 +0000 http://blogs.reuters.com/felix-salmon/2009/05/21/the-us-triple-a-nothing-to-worry-about/#comment-1838 I dont think this is as silly as you think. The contingent liabilities the state has taken on in its effort to stem the crisis, and its effort to subordinate its capital to the senior liabilities of the banking system means that the credit position we assumed for treasuries 5 yrs ago is not the same. Its a lot worse. I dont think this is as silly as you think. The contingent liabilities the state has taken on in its effort to stem the crisis, and its effort to subordinate its capital to the senior liabilities of the banking system means that the credit position we assumed for treasuries 5 yrs ago is not the same. Its a lot worse.

]]> By: jck http://blogs.reuters.com/felix-salmon/2009/05/21/the-us-triple-a-nothing-to-worry-about/comment-page-1/#comment-1834 jck Fri, 22 May 2009 10:58:27 +0000 http://blogs.reuters.com/felix-salmon/2009/05/21/the-us-triple-a-nothing-to-worry-about/#comment-1834 "The US triple-A: Nothing to worry about" I can guarantee you that it matters a LOT that the US or the UK keep the triple-A. This has huge implications for the banking system as the risk-weighting of banking assets automatically jumps if the sovereign rating moves down to A+ “The US triple-A: Nothing to worry about”
I can guarantee you that it matters a LOT that the US or the UK keep the triple-A. This has huge implications for the banking system as the risk-weighting of banking assets automatically jumps if the sovereign rating moves down to A+

]]> By: Flyboy http://blogs.reuters.com/felix-salmon/2009/05/21/the-us-triple-a-nothing-to-worry-about/comment-page-1/#comment-1830 Flyboy Fri, 22 May 2009 02:10:17 +0000 http://blogs.reuters.com/felix-salmon/2009/05/21/the-us-triple-a-nothing-to-worry-about/#comment-1830 There's about $32+ trillion of rated debt outstanding. (of which $2 trillion is mortgage-backed debt, of which a relatively small percentage has actually defaulted -- check my numbers) so the rating agencies have gotten most of it right by any measure, so stop exagerating and stick to the facts. The ratings agency's country ratings have been quite accurate. There’s about $32+ trillion of rated debt outstanding. (of which $2 trillion is mortgage-backed debt, of which a relatively small percentage has actually defaulted — check my numbers) so the rating agencies have gotten most of it right by any measure, so stop exagerating and stick to the facts. The ratings agency’s country ratings have been quite accurate.

]]> By: Mike http://blogs.reuters.com/felix-salmon/2009/05/21/the-us-triple-a-nothing-to-worry-about/comment-page-1/#comment-1828 Mike Fri, 22 May 2009 00:44:10 +0000 http://blogs.reuters.com/felix-salmon/2009/05/21/the-us-triple-a-nothing-to-worry-about/#comment-1828 the mere fact that this is being discused is enough. the mere fact that this is being discused is enough.

]]> By: Mike http://blogs.reuters.com/felix-salmon/2009/05/21/the-us-triple-a-nothing-to-worry-about/comment-page-1/#comment-1827 Mike Fri, 22 May 2009 00:43:44 +0000 http://blogs.reuters.com/felix-salmon/2009/05/21/the-us-triple-a-nothing-to-worry-about/#comment-1827 the mere mention of this as a credible headline is enough. the mere mention of this as a credible headline is enough.

]]> By: Gabriel http://blogs.reuters.com/felix-salmon/2009/05/21/the-us-triple-a-nothing-to-worry-about/comment-page-1/#comment-1825 Gabriel Fri, 22 May 2009 00:12:44 +0000 http://blogs.reuters.com/felix-salmon/2009/05/21/the-us-triple-a-nothing-to-worry-about/#comment-1825 Felix tells us ratings don't matter. Bill Gross thinks otherwise. So does Geithner: May 21 (Bloomberg) -- Treasury Secretary Timothy Geithner said the Obama administration is committed to reducing the federal budget deficit after concerns rose that the U.S. debt rating may eventually be threatened with a downgrade. Felix tells us ratings don’t matter.

Bill Gross thinks otherwise.

So does Geithner:

May 21 (Bloomberg) — Treasury Secretary Timothy Geithner said the Obama administration is committed to reducing the federal budget deficit after concerns rose that the U.S. debt rating may eventually be threatened with a downgrade.

]]> By: Don the libertarian Democrat http://blogs.reuters.com/felix-salmon/2009/05/21/the-us-triple-a-nothing-to-worry-about/comment-page-1/#comment-1821 Don the libertarian Democrat Thu, 21 May 2009 23:01:56 +0000 http://blogs.reuters.com/felix-salmon/2009/05/21/the-us-triple-a-nothing-to-worry-about/#comment-1821 "number of people buying Treasuries because S&P says that they’re triple-A rated is exactly zero." Then how could his comment matter to the market, or even be correct. Presumably, some people bought and sold today. They had, well, I'm assuming that they had, reasons for their actions. How can they fear the US losing something that doesn't matter? "Bill Gross seems to have caused a bit of an uproar with his off-the-cuff comment to Reuters:" Maybe it's his Hermes shirts, whatever they are. I don't see them at Goodwill. “number of people buying Treasuries because S&P says that they’re triple-A rated is exactly zero.”

Then how could his comment matter to the market, or even be correct. Presumably, some people bought and sold today. They had, well, I’m assuming that they had, reasons for their actions. How can they fear the US losing something that doesn’t matter?

“Bill Gross seems to have caused a bit of an uproar with his off-the-cuff comment to Reuters:”

Maybe it’s his Hermes shirts, whatever they are. I don’t see them at Goodwill.

]]> By: Lee Gibson http://blogs.reuters.com/felix-salmon/2009/05/21/the-us-triple-a-nothing-to-worry-about/comment-page-1/#comment-1813 Lee Gibson Thu, 21 May 2009 20:41:38 +0000 http://blogs.reuters.com/felix-salmon/2009/05/21/the-us-triple-a-nothing-to-worry-about/#comment-1813 Thank you. Very sensible. We are so poorly served by our sorry media. Thank you. Very sensible. We are so poorly served by our sorry media.

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