Chile Forum

I thought that this news deserves it's own thread.

From the BBC....



http://www.bbc.co.uk/news/world-us-canada-14428930


I wonder what if any implications if any this will have on the strength of the dollar etc.?

It depends if the rest of them follow suit I guess.

Spang wrote:It depends if the rest of them follow suit I guess.

S&P is following suit: http://edition.cnn.com/2011/BUSINESS/08 ... =allsearch

There's an interesting sentence in there... "the U.S. Securities and Exchange Commission refused to recognize its rating because of the commission's inability to supervise the Beijing-based agency"... interesting in view of an update to the S&P story being reported, to the effect that "S&P is reconsidering its position on a potential U.S. credit downgrade after the Obama administration challenged the credit rating agency's economic model". Being out of reach of the SEC and the USG is perhaps not a disadvantage when producing objective credit ratings

I'm probably being thick but where does the Credit rating agencies divine right come from to make or break countries? Aren't these the same cretins that gave all those sub-prime mortgages and other rubbish a triple A rating?

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As goes gringolandia, so goes Chile:



AUGUST 5, 2011, 4:15 P.M. ET

Chile Stocks End 1.6% Lower On US Economic Fears

SANTIAGO (Dow Jones)--After swaying broadly higher and then lower, the Chilean blue-chip Ipsa index ended 1.6% in the red, amid new fears about a double-dip recession in the U.S. and despite strong domestic economic-activity data.

The Ipsa ended lower at 4076.98 points, but had fallen as much as 3.3% to 4007.87 points by midday, before paring back losses as investors cheered news that Italy will speed up its fiscal consolidation timetable. Volume fell to 138.02 billion Chilean pesos ($296.9 million), versus CLP148.33 billion the prior session.

Shortly after the opening bell, the Ipsa jumped as much as 1.1% on the back of stronger-than-expected domestic economic activity data and a better-than-anticipated reading on U.S. employment levels, following Thursday's massive 3.9% drop, the Ipsa's largest single-day slide since October 2008.

As enthusiasm for the U.S. employment data faded, the Ipsa swung around and headed lower, in line with the Dow Jones Industrial Average.

As several of the Ipsa's heavier-weighted shares also trade in New York, the Ipsa often tracks the DJIA.

patagoniax wrote:.
As goes gringolandia, so goes Chile:

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psssst...!
got Au~Ag?

Spang wrote:I'm probably being thick but where does the Credit rating agencies divine right come from to make or break countries? Aren't these the same cretins that gave all those sub-prime mortgages and other rubbish a triple A rating?

Spang,
In order to be invited to play in the new order of financial matters, you cannot ask such questions. Sorry, no one is supposed to have a memory that retains that much knowledge. As a matter of fact, please inform us of EXACTLY where you learned of such things so that we may repair the record.

Got Milk?

StevenDC wrote:

Spang wrote:I'm probably being thick but where does the Credit rating agencies divine right come from to make or break countries? Aren't these the same cretins that gave all those sub-prime mortgages and other rubbish a triple A rating?

Spang,
In order to be invited to play in the new order of financial matters, you cannot ask such questions. Sorry, no one is supposed to have a memory that retains that much knowledge. As a matter of fact, please inform us of EXACTLY where you learned of such things so that we may repair the record.

Got Milk?

What I meant to say was what does everyone think about the latest Xfactor..


China seems to be upset by this turn of events http://www.guardian.co.uk/business/2011/aug/06/us-credit-rating-downgrade-china. Who knew those commie pinko Chinese were going to win in the end, all without firing a single shot.

Spang wrote:

StevenDC wrote:

Spang wrote:I'm probably being thick but where does the Credit rating agencies divine right come from to make or break countries? Aren't these the same cretins that gave all those sub-prime mortgages and other rubbish a triple A rating?

Spang,
In order to be invited to play in the new order of financial matters, you cannot ask such questions. Sorry, no one is supposed to have a memory that retains that much knowledge. As a matter of fact, please inform us of EXACTLY where you learned of such things so that we may repair the record.

Got Milk?

What I meant to say was what does everyone think about the latest Xfactor..


China seems to be upset by this turn of events http://www.guardian.co.uk/business/2011/aug/06/us-credit-rating-downgrade-china. Who knew those commie pinko Chinese were going to win in the end, all without firing a single shot.

The Chinese are mad and this morning announced they want an international group to be formed to manage the US dollar, this from a country that WILL NOT LET THIER CURRENCY FLOAT on the world market. I think the whole financial crisis is an elaborate scam to screw over the Chinese as they hold the majority of the US debt, I find it interesting they hold the debt as security then when it looks like it will devaluate they want the world behind them to control the US currency, well the line is very short, like 0.

nwdiver wrote:The Chinese are mad and this morning announced they want an international group to be formed to manage the US dollar, this from a country that WILL NOT LET THIER CURRENCY FLOAT on the world market. I think the whole financial crisis is an elaborate scam to screw over the Chinese . . .

Another perspective: The Golden Rule
("He who owns the gold, makes the rules.")

murf wrote:I wonder what if any implications if any this will have on the strength of the dollar etc.?

Aside from the hollow noise from the predictable sources...not much at all.
It has happened to both Japan and Canada, and as soon as those countries where showing signs to improve thir situations, they were upgraded.
So sleep tight, there will be no bogeyman coming around because of this.

Ten Percenter wrote:

murf wrote:I wonder what if any implications if any this will have on the strength of the dollar etc.?

Aside from the hollow noise from the predictable sources...not much at all.
It has happened to both Japan and Canada, and as soon as those countries where showing signs to improve thir situations, they were upgraded.
So sleep tight, there will be no bogeyman coming around because of this.

Canada's AAA was reconfirmed 3 weeks ago and things are getting better but our dollar is being battered.