Despite the Baggers insistence on the purity and omnipotence of the Free Market Fairy, Moody's recognizes that the free market does not operate in a vacuum:
Moody's downgrades big banks on changed policy
By Joe Rauch and David Henry | Reuters – Wed, Sep 21, 2011
(Reuters) - Moody's Investors Service lowered debt ratings for Bank of America Corp, Citigroup Inc and Wells Fargo & Co on Wednesday, saying the U.S. government is getting less comfortable with bailing out large troubled lenders.
The government is "more likely now than during the financial crisis to allow a large bank to fail should it become financially troubled," said the rating agency, a unit of Moody's Corp.
A few weeks later, Moody's did the same to some UK banks (h/t
Atrios):
UK financial firms downgraded by Moody's rating agency
7 October 2011 Last updated at 14:25 ET
BBC News
Moody's has downgraded the credit rating of 12 UK financial firms including Lloyds TSB, RBS, Nationwide and Santander UK.
The ratings agency said it now believed the government was less likely to support firms that got into trouble.
UPDATE: An IMF advisor thinks a bit like Glenda Beck:
MF adviser: The global economy could collapse ‘in two to three weeks’
By Stephen C. Webster
Friday, October 7, 2011
The Raw Story
In an interview on BBC yesterday, International Monetary Fund (IMF) adviser Robert Shapiro said something quite alarming: without a plan to save the Euro, the global economy will collapse “in two to three weeks.”
“We are not just talking about a relatively small Belgian bank, we are talking about the largest banks in the world, the largest banks in Germany, the largest banks in France, that will spread to the United Kingdom, it will spread everywhere because the global financial system is so interconnected. All those banks are counterparties to every significant bank in the United States, and in Britain, and in Japan, and around the world.
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