Standard & Poor’s changed the
UK's credit outlook from stable to negative a few days ago, and warned that there is a chance the UK could lose its AAA rating. Meanwhile, Moodys, another of the
big 3 rating agencies, has warned that
the US might also eventually lose its AAA rating. The UK announcement
caused sterling to drop by 1% and the FTSE by 2%. However,
many blame the same rating agencies for their part in
triggering the subprime crisis. The irony of this is not lost on the
Wall Street Journal, who note that "After all, those governments are jacking up spending, in part, to bail out the financial firms who gobbled up those 'AAA' asset backed securities duly blessed by the credit ratings firms."
[more inside]
posted by memebake
on May 26, 2009 -
38 comments
" ... the recession, particularly if it turns out to be as long and deep as many now fear, will accelerate the rise and fall of specific places within the U.S.—and reverse the fortunes of other cities and regions." From The Atlantic Online -
How the Crash Will Reshape America
posted by Afroblanco
on Feb 15, 2009 -
69 comments
Carmen Reinhart of the University of Maryland and Kenneth Rogoff of Harvard University have compared the recent US subprime mortgage crisis with five downturns in industrialized economies in the past 30 years in their brief paper,
Is the 2007 U.S. Sub-Prime Financial Crisis So Different? (pdf). Their conclusion: “given the severity of most crisis indicators in the run-up to its 2007 financial crisis, the United States should consider itself quite fortunate if its downturn ends up being a relatively short and mild one.” Summarized, with some data and charts,
here.
Via.
posted by ibmcginty
on Feb 9, 2008 -
19 comments
