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Uk And Austria In Line For Possible Credit Rating Downgrades

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UK and Austria in line for possible credit rating downgrades

As the dust starts to settle on the downgrade of Irish national debt by the credit rating agency S&P there are concerns this evening that Britain and Austria could be next on the list. Britain is the only one of the two countries on a negative outlook from S&P and could be in line to lose its valuable AAA rating. The move to reduce the rating on Irish sovereign debt has set a very difficult precedent and one which is striking fear into investment market.

However, when you consider the massive amounts of money which the UK government has ploughed into financial sector, the ongoing budget deficit and enormous funding required for the future, it is easy to see why companies such as S&P are concerned. While the UK government will reiterate its stance that the UK will move out of recession in the latter part of 2009 and the early part of 2010 this is not a belief held by every economic analyst.

Let's not underestimate the impact which a downgrade of UK sovereign debt would have on the finances of the UK, with interest payments increasing substantially, access to funding more expensive than ever before and serious problems going forward.

Not really news to us here, but still a damning indictment of our broken Britain.

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Credit rating agencies are a joke anyway, both the UK and US should be rated EEE- as they are both technically insolvent.

Edited by wise_eagle

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impossible.

Uk is booming.

Jeremy vine show confirms.

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impossible.

Uk is booming.

Jeremy vine show confirms.

:lol: have to laugh at your comment there..

(even though I know a UK downgrade is nothing to laugh about really) :o

but as said already, not unexpected, by us here, when and if, it does happen.

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But but debt is wealth.

How can this country possible be downgraded, next we'll have the same rating as that idiot Mugabe and we've got Ponzi Brown in charge who saved the world.

Something is truly wrong in the system.

S&P don't know what they are talking about. What about the 3% growth darling predicted for 2011 and we get downgraded.

Next you'll be telling me we are governed by idiots.

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Exactly.

We must spend our way out of recession just like we spent our way into recession.

Gordon is one of the few who understands this little understood paradox.

Lucky for us Ponzi Brown is in charge.

It appears that too many people don't understand this paradox.

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Beyond hearing that the UK is now AA , what implications would that have in the short term?

Would QE stop?

Would interest rates have to go up?

I know it makes it harder to borrow money , but what does it mean for the UK to lose its credit rating?

Is it simply confirmation of what we all already know?

I know a few weeks ago Obama said the US was bankrupt and people on HPC said that despite everyone knowing this its one thing knowing it and another SAYING it...........

So what will AA mean to UK ?

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Beyond hearing that the UK is now AA , what implications would that have in the short term?

Would QE stop?

Would interest rates have to go up?

I know it makes it harder to borrow money , but what does it mean for the UK to lose its credit rating?

Is it simply confirmation of what we all already know?

I know a few weeks ago Obama said the US was bankrupt and people on HPC said that despite everyone knowing this its one thing knowing it and another SAYING it...........

So what will AA mean to UK ?

12 step programme?

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Less than a triple A rating would precipitate a very black Trading day.

Or rather a Trader's brown trouser day.

Hope I'm out of the market when it happens.

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12 step programme?

Interesting:

We admitted we were powerless over house prices —that our mortgages had become unmanageable.

Came to believe that a Power greater than ourselves could restore us to sanity. QE ?

Made a decision to turn our will and our lives over to the care of God as we understood Him. Mc Tavish?

Humbly asked Him to remove our shortcomings. PLEASE FORGIVE ME HAMISH AND RINOA .

Made a list of all persons we had harmed, and became willing to make amends to them all.

Oh dear I think McTavish's list might be bigger than mine !

Continued to take personal inventory and when we were wrong promptly admitted it. PLEASE FORGIVE ME AGAIN HAMISH AND RINOA FOR NOT BELIEVING A SINGLE WORD YOU SAY

Edited by Sybil13

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Less than a triple A rating would precipitate a very black Trading day.

Or rather a Trader's brown trouser day.

Hope I'm out of the market when it happens.

Just a DAY.

Is that because it will be a day to end all days? (Better get on with my 12 Step Inventory)

Or just a day and then it will be back to life as usual?

What kind of DAY will that be? Will it be one where STR funds are threatened by banking sector collapse?

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PLEASE FORGIVE ME AGAIN HAMISH AND RINOA FOR NOT BELIEVING A SINGLE WORD YOU SAY

Your posts are well thought out, concise and full of fresh and interesting quotes we've never heard before.

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whats new in this article? nothing.

+1

Copy & paste "journalism" at its worst.

Edited by VoteWithYourFeet

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Your posts are well thought out, concise and full of fresh and interesting quotes we've never heard before.

Your posts are logical and concise. You always address the underlying issues of the topic at hand with hard facts and in-depth knowledge of economics.

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Your posts are logical and concise. You always address the underlying issues of the topic at hand with hard facts and in-depth knowledge of economics.

And I believe everything you say.

But Sybil doesn't believe anything neither I or Hamish says.

Perhaps the sublety is lost on you Eiji.

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Your posts are well thought out, concise and full of fresh and interesting quotes we've never heard before.

Whereas yours aren't!

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And I believe everything you say.

But Sybil doesn't believe anything neither I or Hamish says.

Perhaps the sublety is lost on you Eiji.

No...don't flatter yourself, you know exactly what I mean.

The subtlety is not lost on me.

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Quote :-

Beyond hearing that the UK is now AA , what implications would that have in the short term?

Would QE stop?

Would interest rates have to go up?

I know it makes it harder to borrow money , but what does it mean for the UK to lose its credit rating?

Is it simply confirmation of what we all already know?

Maybe someone who knows more than me can answer this but as I understand it certain investment funds have to hold very safe AAA rated investments (pension funds and safe investments). If the UK is downgraded to AA or lower then those funds won't be in the market for our debt and may have to sell their existing holdings.

Remove potential buyers from the market for UK debt and gilt yields would have to rise to attract other investors making financing our public debt more expensive.

Or I could be wrong. The markets seem to be mad at the moment so they'd probably just carry on buying them.

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And I believe everything you say.

But Sybil doesn't believe anything neither I or Hamish says.

Perhaps the sublety is lost on you Eiji.

Interesting and use of the double negative there Rinoa, though I suspect the subtlety of it might be lost on you....

So Sibyl doesn't believe anything that you and Hamish don't say...........

You could have used a double negative for comedy :lol:

You could have used it for irony ;)

You could have used it to emphasise the negativity :ph34r:

Instead you cunningly used the double negative to render your post meaningless drivel. (Some things never change ;) )

I'm having whistful thoughts now about a world where you and Hamish don't say anything!!!!! My life is a better place already ;)

Edited by Hip to be bear

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Quote :-

Beyond hearing that the UK is now AA , what implications would that have in the short term?

Would QE stop?

Would interest rates have to go up?

I know it makes it harder to borrow money , but what does it mean for the UK to lose its credit rating?

Is it simply confirmation of what we all already know?

Maybe someone who knows more than me can answer this but as I understand it certain investment funds have to hold very safe AAA rated investments (pension funds and safe investments). If the UK is downgraded to AA or lower then those funds won't be in the market for our debt and may have to sell their existing holdings.

Remove potential buyers from the market for UK debt and gilt yields would have to rise to attract other investors making financing our public debt more expensive.

Or I could be wrong. The markets seem to be mad at the moment so they'd probably just carry on buying them.

Since we seem to be the main purchasers of our own debt at the moment the effect could arguably be negligible. We are the only idiots buying our own debt with our own 'funny money'!

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Interesting and use of the double negative there Rinoa, though I suspect the subtlety of it might be lost on you....

So Sibyl doesn't believe anything that you and Hamish don't say...........

You could have used a double negative for comedy :lol:

You could have used it for irony ;)

You could have used it to emphasise the negativity :ph34r:

Instead you cunningly used the double negative to render your post meaningless drivel. (Some things never change ;) )

I'm having whistful thoughts now about a world where you and Hamish don't say anything!!!!! My life is a better place already ;)

You spelt Sybil incorrectly.

Twice.

;)

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