Wednesday, July 21, 2010

Credit rating chickens coming home to roost in the good old USA, Part 2.

The story has been picked up by a major financial blog that I follow, read that article
here:
http://jessescrossroadscafe.blogspot.com/2010/07/china-us-is-insolvent-and-faces.html

I suggest that you click on the Financial Times link in the blog post. You will have to register, but it is free and it will allow you access for up to 10 articles a month and access
to 5 years back in their archives.
They ask for your email, you make up a password,
and they ask for a zip code. I checked the box not to send me offers.

Here is the link to the Chinese news agency article about the ratings company. This is an
english language site, quite nice actually, and it reads like americans wrote it.
(from the not ready for primetime dept, can you believe this windows live writer spell check
says I misspelled english and americans? Now do you see why one of my leitmotif’s has
been constant complaints about buggy software?-END OF RANT)
http://news.xinhuanet.com/english2010/indepth/2010-07/19/c_13403979.htm

My original post is here:
http://morongobillsbackporch.blogspot.com/2010/07/credit-rating-chickens-coming-home-to.html

The newspapers, magazines, blogs, and financial shows are starting to mention this
opening salvo in a possible financial war now, I tend to agree with Jesse, we’re playing
chess or checkers, while our adversary is playing go. As I mentioned in my first post on
this subject, they are masters of indirection. Why go nuclear, dumping their dollar holdings,
when they can cover most of their positions with credit default swaps, derivatives etc to
cut their risk. This frees them up to pursue their goals without taking a major hit in their
investment portfolio, while they can attempt to teach us a financial lesson we won’t forget.
It’s diabolical actually, using Wall Street created “weapons of financial destruction”
against the creators and inventors of those wofd’s, to reach their national goals.

Just something to think about here on the backporch.

Morongobill

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