Ratings reflect the ability of the government to pay its obligations. A currency issuing government can always pay its bills. As such the USA is always AAA as long as Congress approves payment.
The credit agencies rated sub prime mortgages triple AAA. When challenged, after those imploded in the GFC, the agencies defense was that they just give an opinion. Caveat emptor.
I won't cry if bond sepeculators bloody Trump's nose.But the myths about govt bonds as like "household debt" have contributed significantly to the emiseration of North Americans. The biggest threat isn't a bunch of socialists in Beijing, it's the capitalists on Wall St & Bay St
Yep. Credit rating agencies are what they are, issuers of credit ratings. Residues of the 19th century, if you like. And, as your example indicates, their opinions have effects in the world. Maybe still do. They didn't all close up shop in shame after the GFC, tho maybe they should have.
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