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Dagong Downgrades Japan Local Currency Sovereign Rating To A+
Following years of inactivity it has now become cool to be the first rating agency to pull the trigger on another insolvent sovereign. After yesterday's downgrade of Greece by Moody's to Caa1, today Dagong decided to one up its American counterparts and downgrade the country with the 250% debt/GDP: Japan. From Xinhua: "Chinese ratings provider Dagong Global Credit Rating Co. Ltd., on Thursday cut its rating for Japan's local and foreign currency sovereign credit by one level to A+ and AA- respectively. The rating agency said the downgrade took into consideration Japan's political situation, economy, fiscal revenue and expenditure, as well as debt revenue. Expecting a mild recovery of the Japanese economy and no significant deterioration of Japan's sovereign debt financing within the next 12 months, Dagong put the country's credit outlook as "stable."" As Richard Koo noted yesterday, the probability that the Japnese economic situation will deteriorate absent stimulus is very high. Unfortunately, the problem is that since there is little to no spare money available "out there" the ability to kick the can down the road with another Keynesian band aid is severly limited. Expect to see many more downgrades of Japan, and not just Dagong, before the year is over.
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WHO hit da gong?
It's off to the races it looks like. The downgrade derby. Some want it down, some want it up...the dystopia of floating fiat...
but a rising tide floats ALL boats.... ;-)
ORI
http://aadivaahan.wordpress.com/2011/05/26/the-video-trailer/#comment-2349
I read it as "doggone". BTW-Isn't that rating for Greece 3 levels below horse shit?
Totally OT, but start your day with the greatest music video ever made.
It made me feel like the US has hope.
http://www.youtube.com/watch?v=ZPjjZCO67WI
after 1:40 it'll blow your mind. One take.
It is the cities, counties and states that will resurrect America once we shit can the feds.
Ratings are meaningless simplification. Imagine an idiot who only know 3 letters A, B and C. He also knows "+". He answers any question using the 3 letters and the "+". How are you today? A+
imagine that. a chinese rating company downgrades its closest and strongest competitor while they're down.
nah, no politics involved here.
The Chinese hate the Japs guts. 16 hours of 24 hours worth of Chinese TV shows some unrealistic melodrama (with horrid special FX and Heinz ketchup) where some Chinese pussy single-handedly defeats 20 Japs with a paperclip after they raped his GF. Wow, they lowered the Japan ratings after a massive earthquake.
Tyler, I love ZeroHedge, but if this is a headline to you, you better go back and check the newswires again buddy.