Moody's downgrades the U.K.'s credit rating to AA1 from AAA, citing continuing weakness in the...

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thechaser Comments (456)
 
but of course, reality has no effect on valuations of any sort, right macro investor?
22 Feb, 06:17 PM Reply Like

Teutonic Knight Comments (1868)
 
"...right..."

yes, right, of course.
22 Feb, 06:47 PM Reply Like

Rinascimento Comments (374)
 
Moody should be thought a lesson not to touch the untouchables
22 Feb, 10:19 PM Reply Like

june1234 Comments (920)
 
Both the UK's inflation rate and expectation of future inflation have picked up dramatically in effect tying the BOE's hands as far as any more QE is concerned
23 Feb, 05:44 AM Reply Like

Rinascimento Comments (374)
 
"....tying BOE's hands......" ; poor Brits what a surprise; why the surprise here? they have experience in defaults and currency devaluation; maybe their educational system needs updated; another IMF loan and the Iron Fist Lady will fix their economy or a war with Argentina
23 Feb, 09:31 AM Reply Like

Squeeky Wheel Comments (178)
 
I must not understand what a rating means. I always thought of it as chance of default. Since the UK can't run out of money they should get AAA by definition. (US is different, tea-folk might *choose* to default, which is different than running out of money).
23 Feb, 06:03 AM Reply Like

marketwatcher23 Comments (817)
 
Inflating your way out of debt is the same thing as defaulting.
23 Feb, 07:10 AM Reply Like

Rinascimento Comments (374)
 
what happens to the party that holds the British pound as a reserve currency? what gives them the right to print and default on their paper used as a reserve?
23 Feb, 09:42 AM Reply Like

Michael Clark Comments (7800)
 
Thank you marketwatcher. Destroying your currency to protect the illusion of solvency IS default.
24 Feb, 03:32 PM Reply Like

varan Comments (1986)
 
The GOP's path to economic salvation, supported by all Republicans with admirably unflinching conviction, of inflicting pain on the poor and coddling the rich to solve any and every problem is spreading all over the world, and working out just fine.

http://bit.ly/13yW880


Moody's recognises that Britain's economic travails stem from depressed growth, but its analysis seems incapable of progressing on from there. Taken as a whole, the agency is saying, with a straight face, that "Britain's attempts to cut its debt have harmed its attempts to cut its debt, and this could harm its attempts to cut its debt", and it sees nothing problematic with that.
23 Feb, 12:12 PM Reply Like

Michael Clark Comments (7800)
 
The UK is worse off than the US, and is right there with Japan in terms of debt, which is still growing. And their leadership keeps encouraging more borrowing, while paying lip service to 'austerity'.

We are approaching the end of the world we have known since 1983. This world will end; and almost immediate a new world will begin. The Biblical Armageddon happens every 36 years. Better get ready.
24 Feb, 03:32 PM Reply Like