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Sour Mash

Breaking - Us Credit Rating Downgraded

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From the Market Ticker:

China downgrades US credit

Tuesday, November 09, 2010 10:08:03 AM

(CH) Chinese rating agency Dagong Global Credit downgrades US credit rating due to QE program (update) - Chinese press

- Cut long term US sovereign rating one notch to A+ from AA, with a negative outlook.

- "The serious defects in the U.S. economy will lead to long-term recession and fundamentally lower the national solvency. The credit crisis is far from over in the United States and the U.S. economy will be in a long-term recession." Weaker dollar will hurt US ability to attract dollar capital reflow. "In essence, the U.S. government's move to devalue the dollar indicates its solvency is on the brink of collapse"

Can't see the US based credit agencies ever doing likewise, unfortunately.

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It will be interesting to see whether any Chinese entities have rules that prevent them from holding debt securities issued by entities rated below a certain level.

As an aside, isn't a downgrade from AA to A+ a two notch downgrade (unless they were actually AA- before).

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The Chinese need the U.S so they can do whatever they want but ultimately they'll have to bend over and take it like the guy before them and the guy that comes after them. The best they can hope for is something to wedge between their teeth to bite down on.

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  • 140 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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