This, perhaps, is the true lesson of the downgrade of America's credit rating, and the market reaction to that event.
The last debt-ceiling battle between Congress and President Barack Obama ended in July 2011, after bringing the nation close to default, resulting in a credit-rating downgrade and financial market turmoil.
The last debt ceiling battle between Congress and Mr Obama ended in July 2011, after bringing the nation close to default and resulting in a credit rating downgrade as well as financial market turmoil.
The last debt ceiling battle between Congress and Mr Obama ended in July 2011, after bringing the nation close to default on its debt and resulting in a credit rating downgrade as well as financial market turmoil.
In fact, though, Congress has already produced a solution, albeit directed at different market actors: credit-rating agencies.
FORBES: Should Regulators Treat Google Like Standard & Poor's?
As for the credit-rating concerns, research firm Municipal Market Advisors said in a recent report that Detroit's "risk of downgrade" has "increased" in part because of the sharp demographic decline.
Market Cap, Liquidity, Credit Rating, Industrial Activity etc, and try to time the entry and exit correctly.
Like an iPod nano purchased at the Pearl Market in Beijing, this credit rating downgrade will stop working before you even get it home.
Some expect the bond market and a downgrade in our credit rating to force limits, which seems unlikely given weaker conditions in other countries.
FORBES: The U.S. Needs To Win The Battle To Limit Government Now
Apparently undeterred by the continuing difficulties facing some institutions and by the country's lack of an international credit rating foreign banks are eyeing the Nigerian market for bargains.
ECONOMIST: The hard task of reforming Nigeria's banking system
German bonds reflect the country's strong economy, triple-A credit rating and ease of trading or liquidity in the market.
WSJ: Yields Rise on German Bunds as Big-Name Investors Sell Down
" After the market closed, Fitch Ratings lowered its outlook on its credit rating of the U.S. government to "negative" from "stable.
Given other major countries have also been downgraded the past couple years, and the fact that the credit rating agencies, themselves, have seen their own credibility eroded, the market place just yawned at the news.
FORBES: P.M. Kitco Metals Roundup: Gold Ends Lower on Chart Consolidation, Bearish Outside Markets
These take many forms: underwriting and registration fees, credit-rating costs, taxes and the time it takes to bring a bond to the market.
The run-up occurred even though a new debt-ceiling agreement was reached in Washington, with market participants still worried about the high deficit and whether the U.S. credit rating will be downgraded yet.
FORBES: Analysts Look For More Gains In Gold, Although Some Wary Of Correction
As befits a man who won the Nobel prize for his work on asymmetric information, Mr Stiglitz dwells on the market imperfections and misaligned incentives that distorted decisions made by everyone from mortgage originators to credit-rating agencies.
ECONOMIST: The financial crisis and the future of regulation
Adelman also won plaudits following his contrarian March 2003 call that tobacco stocks would outperform the overall market, even as analysts from Smith Barney, Credit Suisse First Boston and the big debt-rating agencies were downgrading the sector.
应用推荐