Jump to content
House Price Crash Forum
Nabby81

Credit Downgrade by Moody's

Recommended Posts

https://www.ft.com/content/c464354c-105e-3f91-afda-fc32a28e96e9

http://www.zerohedge.com/news/2017-09-22/pound-flash-crashes-after-moodys-downgrades-uk-aa2

Quote

Moody's expects weaker public finances going forward, partly linked to the economic slowdown under way but also reflecting the increasing political and social pressures to raise spending after seven years of spending cuts. Since 2015, the government has been finding it increasingly difficult to implement the spending cuts that it has been targeting, in particular on welfare spending. More recently, the government has yielded to pressure and raised spending in several areas, including for health and adult social care. It also agreed to above-budget pay increases for some public sector workers. While these additional expenditures will be funded out of current budgets, the pressure to continue to increase spending in the coming years is likely to remain high, in particular on health care and the public sector wage bill.

 

Share this post


Link to post
Share on other sites
49 minutes ago, Nabby81 said:

Moody's expects

50 minutes ago, Nabby81 said:

Moody's expects

It's what they don't expect that we should be interested in. Like in 2007 when they didn't expect CDOs to blow up by rating them AAA.

I'm amazed anyone listens to them, they're a ratings shop. 

Share this post


Link to post
Share on other sites

Would the welfare cuts be the £25 billion in housing benefit? Imagine how much social housing they could build for £25 billion.. 1 years spending on social housing could fix the shortfall and raise living standards..

Share this post


Link to post
Share on other sites

GET. IN.You FECKIN BEAUTY. Not long now folks, we are soon to be 'living in interesting times'.

Edited by Giraffe

Share this post


Link to post
Share on other sites
Quote

The downgrade came just hours after a major speech by Theresa May in which she had hoped would clarify the UK's position on Brexit. Independent

The UK’s rating was downgraded to Aa2, two notches down. Interest rates are going up sooner than expected. 

Edited by rollover

Share this post


Link to post
Share on other sites
7 hours ago, rollover said:

The UK’s rating was downgraded to Aa2, two notches down. Interest rates are going up sooner than expected. 

It was actually downgraded 1 notch, but that it 2 notches lower than where it was. 

The 1 previous notch had almost no impact on credit spreads so it will be interesting to see if this one has any impact on the cost of borrowing. If it does, it will heap a lot more pressure on the government.

Share this post


Link to post
Share on other sites
Quote

 

The investor service downgraded the country's long-term issuer rating to Aa2 from Aa1 over concerns that Brexit could hit the economy at a time when the government's debt reduction plans are already behind schedule.

Moody's said that the government's approach to public finances was "increasingly in question" and the the debt burden is likely to rise. It said that "the government has yielded to pressure and raised spending in several areas". Meanwhile "revenues are unlikely to compensate for higher spending." CityAM

 

The Moody's simply saing the party have to stop.

Share this post


Link to post
Share on other sites

Well the narrative, beloved by the BBC, is that we are living through unnecessary austerity, that Teresa May is an evil witch and starving the masses into foodbank use.  So chances of living within our means are practically zero and a 75 billion deficit (stealing resources from the unborn) is Austerity. Hey we are worth jam today, f%%k the unborn and potential future hardships if our credit line is stopped and we have to inflate away the debt by stealing housepricecrasher's savings to pay for Social Justice today.

All politicians have a gun to their heads to overspend, or face the lynch mob.

Edited by crashmonitor

Share this post


Link to post
Share on other sites

Anyone know the ranking of countries by credit rating. It would give a better idea of how the UK is seen compared to other countries.

i still think we will be one of the least worse countries. 

Share this post


Link to post
Share on other sites
59 minutes ago, crashmonitor said:

...So chances of living within our means are practically zero and a 75 billion deficit (stealing resources from the unborn) is Austerity...

The problem is why after 40 years of so called economic 'progress' the level of welfare services is in decline to that which was provided 40 years ago. The failure of neo liberal trickle down economic myths to distribute the wealth fairly and failure to reduce the wealth inequality gap, then to promote the claims we are 'living beyond our means', is just more crap and another complicite media spun diversion.

 

 

Share this post


Link to post
Share on other sites
36 minutes ago, Futuroid said:

So the UK also has a negative outlook, when I started seriously looking into the economy in 2011, I came to the conclusion that there was no plan to pay the debt back, and no way even to get the deficit properly under control.  It is actually amazing that the UK rating is so good.

Share this post


Link to post
Share on other sites
15 minutes ago, DarkHorseWaits-NoMore said:

The problem is why after 40 years of so called economic 'progress' the level of welfare services is in decline to that which was provided 40 years ago. The failure of neo liberal trickle down economic myths to distribute the wealth fairly and failure to reduce the wealth inequality gap, then to promote the claims we are 'living beyond our means', is just more crap and another complicite media spun diversion.

 

 

How can any system of wealth redistribution be fair if it involves taxing labour?

 

Share this post


Link to post
Share on other sites
26 minutes ago, reddog said:

So the UK also has a negative outlook, when I started seriously looking into the economy in 2011, I came to the conclusion that there was no plan to pay the debt back, and no way even to get the deficit properly under control.  It is actually amazing that the UK rating is so good.

Momentum (with a small ‘m’).

Share this post


Link to post
Share on other sites
4 minutes ago, jiltedjen said:

thanks for the link, so we really are not a great prospect. For a rich developed country anyway 

GDP per capita shows how not rich we really are.

Share this post


Link to post
Share on other sites
3 hours ago, doomed said:

How can any system of wealth redistribution be fair if it involves taxing labour?

 

Not to mention renting our essential medium of exchange, the broad money supply, from a cartel of commercial banks.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 295 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.