bond market to s&p: you're stupid. - Democratic Underground

unblock

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Sat Aug-06-11 09:52 AM
Original message

bond market to s&p: you're stupid.

Edited on Sat Aug-06-11 10:00 AM by unblock

http://online.wsj.com/mdc/public/page/mdc_bonds.html

france 10-yr debt: 3.006%, rated aaa by s&p
u.k. 10-year debt: 2.775%, rated aaa by s&p
u.s. 10-year debt: 2.559%, rated aa+ by s&p

what's wrong with this picture?

why on earth would the market be demanding a higher interest rate from u.k. and french debt than from u.s. debt if u.s. debt is, per s&p, riskier?

could it be that s&p was playing politics in its downgrade decision?

nah, that could never happen.

edited to add france & re-source from wsj.

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unblock

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Sat Aug-06-11 05:52 PM
Response to Original message

1. self-kick....

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Drahthaardogs

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Sat Aug-06-11 06:12 PM
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2. The truth will come out soon enough I am sure.

Lots of cloak and dagger shit I imagine.

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girl gone mad

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Sat Aug-06-11 06:24 PM
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3. It isn't all that complicated.

A sovereign currency regime can never default except by choice, and there was and is no danger of that happening.

S&P gave Japan a long-term credit rating below that given to Botswana, Chile and Hungary, yet Japan is still able to borrow at interest rates well below those of most AAA rated countries.

S&P is playing politics here, not providing accurate analysis. Time for some arrests.

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