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

Moody's downgrades the U.K.'s credit rating to AA1 from AAA, citing continuing weakness in the U.K.'s medium-term growth outlook the ratings firm expects to extend into the second half of the decade, and the country's high and rising debt burden.
Comments (11)
  • thechaser
    , contributor
    Comments (515) | Send Message
     
    but of course, reality has no effect on valuations of any sort, right macro investor?
    22 Feb 2013, 06:17 PM Reply Like
  • Teutonic Knight
    , contributor
    Comments (2055) | Send Message
     
    "...right..."

     

    yes, right, of course.
    22 Feb 2013, 06:47 PM Reply Like
  • Rinascimento
    , contributor
    Comments (1049) | Send Message
     
    Moody should be thought a lesson not to touch the untouchables
    22 Feb 2013, 10:19 PM Reply Like
  • june1234
    , contributor
    Comments (2627) | Send Message
     
    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 2013, 05:44 AM Reply Like
  • Rinascimento
    , contributor
    Comments (1049) | Send Message
     
    "....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 2013, 09:31 AM Reply Like
  • Squeeky Wheel
    , contributor
    Comments (318) | Send Message
     
    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 2013, 06:03 AM Reply Like
  • marketwatcher23
    , contributor
    Comments (935) | Send Message
     
    Inflating your way out of debt is the same thing as defaulting.
    23 Feb 2013, 07:10 AM Reply Like
  • Rinascimento
    , contributor
    Comments (1049) | Send Message
     
    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 2013, 09:42 AM Reply Like
  • Michael Clark
    , contributor
    Comments (8755) | Send Message
     
    Thank you marketwatcher. Destroying your currency to protect the illusion of solvency IS default.
    24 Feb 2013, 03:32 PM Reply Like
  • varan
    , contributor
    Comments (3814) | Send Message
     
    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 2013, 12:12 PM Reply Like
  • Michael Clark
    , contributor
    Comments (8755) | Send Message
     
    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 2013, 03:32 PM Reply Like
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