Tuesday, November 27, 2012

An Interesting Development

I came across an article today that we are sure to hear more about in the near future. Point of fact I am surprised this move by the EU wasn't initiated earlier and I bet Obummer tries a similar push before his second term is over.

Bloomberg - Credit Rating Companies in EU to Face Sovereign Debt Curbs

On sovereign debt ratings, lawmakers and officials agreed that each credit rating firm must pick three days a year when they would be allowed to give so-called unsolicited assessments of governments’ creditworthiness, according to Jean-Paul Gauzes, a lawmaker involved in the talks. Ratings firms may get a chance to issue unsolicited ratings outside those dates if they could justify it to regulators. Unsolicited assessments are those that haven’t been requested and paid for by a client. 

Another words they want to limit the rating firms access and ability to make spot calls regarding debt to save themselves from the side effects of a downgrade.

This move ranks right up there with the so called scare tactics of proclaiming governments making a move on retirement accounts and other investor rules and regulations designed to buffer the governments from their own over spending and terrible choices. Some economists and analyst have been predicting such moves for years now while they have been shouted down as fear mongers and spinning fairy tales.

This is another sign of global downward movement and will certainly effect investor trust and consumer sentiments. Let's face it the only thing really keeping the FIAT money afloat, especially the Dollar and Euro is public confidence. A Financial collapse always begins to get real once the consumer confidence is shaken to the point they no longer wish to accept or use that currency. Government control of the reporting agencies is another step towards that end.

Keep Prepping Everyone!!!

4 comments:

  1. I believe Argentina took its citizens' retirement accounts. That president of that country is a big supporter of this one.

    He'll try it here one day.

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  2. duh, i believe that citizens retirement accounts are currently being looked at and scrutinized...and yes, i believe that the president that we have has been looking at them for some time.

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  3. The debt rating companies are scum. Only Fitch (the smallest) is worth a cr_p.

    The want to shut them up of course, but if they didn't mandate that insurance companies, banks, ect. held a certain level of rating they would be out of business altoghether.

    Per what Matt and Anon said about grabbing pensions. It was threatened a few times- by the more fringe Democrats- but not in a long time. Wall Street pays off both sides.

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  4. I think it is 401K's are now 40bama's. Power grab and eliminate the middle class.

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