Unlike the supposed brand name rating agencies which did little to help ordinary investors going into our economic crisis, Egan-Jones’ business model differs markedly from the industry incestuous nature of its counterparts. The resulting lack of inherent conflict allows Egan-Jones to speak freely and boldly. What a novel concept.
Actually, Standard & Poor, the U.S. rating agency being pummeled by CNN, MSNBC, & the MSM isn’t the first agency to downgrade this country’s credit worthiness. It’s the third! Seems to me that given the political/financial realities of the U.S. economy that S&P has shown great restraint!
After all it;s not as if they didn’t give Team Obama and the Congress fair warning with exact instructions as how to avoid the downgrade… cut $4 trillion in debt!
That’s akin to (the Atlanta teachers recently found changing test answers) giving all concerned (Obama, Geithner, Reid et al.) a crib sheet, Still don’t get it? They gave you the answers, lamebrains one and all!
Who are the other two ratings agencies? Well, they are not part of the the so-called “big three” Western agencies Moody’s, Fitch, and Standard & Poor, perhaps the reason why the MSM said barely reported this.
Egan-Jones (who?) cut our rating in July, plenty of time for Team Obama and the Congress to (at the very least) pretend to get their act together. The story was reported on July 19th and generally ignored by the MSM. Oh, I know, I know, you’re saying to yourself, “What a shock!”
The little known ratings agency said about the downgrade. “The major factor driving credit quality is the relatively high level of debt and the difficulty in significantly cutting spending.”
Exactly who is the other ratings agency to downgrade our debt? It;s China’s Dagong Global, not exactly a household name, but important because the agency is from the country that is the largest holder of U.S. debt.
Dagong Global stated, ” the debt deal had not changed the general trend in which the increase in debt outpaced the increase in GDP and tax revenue. […] there is an eight-year difference between the two objectives.”
