Moody's @ S&P : we beg to differ

Moody's released an explanation for the AAA ratings they still give the U.S.A, in response to S&P's recent rating. It appears that the main difference between the two assessments is the way U.S politics is interpreted by the two agencies, which just goes to show the true value behind ratings....

But in a more serious note: Both agencies, and too many economy experts miss the point: If a government is to intervene in the market when a financial crisis takes place, then room must be made for the necessary resources in that government's budget. Therefore, deficit measuring parameters like the debt/GDP ratio must be different when things are not thriving. The insistence to use the same economic tools when economies flourish and when economies fight to stick together is foolish. When we remember what debt/GDP rations looked like at war times, and when we understand that the current state is a war - the battle for the stability of global and local economies, it is clear that such changes in economic thought must be made.

The only question is how much fear and how many losses will the financial world know before this change in modern economic thought is reached. But I have no doubt in my mind - sooner or later, this will be realized by everyone. 


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