Moodys

[gunnut14]

Who or rather what is it.
How can it make every government and business shake in their shoes.
Was reading some of the garbage news where "Moodys" was going to down grade most American Cities, States and the American government.
Who are they, and from whom do they get this power?



gunnut14

[oneokie]

Short answer is that they are an investment rating service.

[Catshooter]

Google is your friend.

They are supposedly a neutral credit standing rating service.


Cat

[shooter93]

And they are the same guys who gave junk bonds and toxic mortgages a triple a rating along with Enron etc. Why anyone on the planet pays any attention to them is beyond me.

[kywoodwrkr]

And they are the same guys who gave junk bonds and toxic mortgages a triple a rating along with Enron etc. Why anyone on the planet pays any attention to them is beyond me.
I couldn't agree more.
But then, they told some folks(congressional spenders) what they wanted to hear.
Where are the founding fathers, and the marksmen of the time when we need them?

[MtGun44]

Just for the new folks that would be a "AAA" (triple A) rating, the highest. Of course, they
are somtimes completely full of mule manure. However, if they DO down rate US Treasury
bonds ("T-bills") it will take a higher interest rate on the bonds to sell them to account for
the additional risk. Low risk investments = low rate of return (low interest rate)
Higher risk investments = higher rate of return (higher interest rate) to attract investors to
risk their money on something that may have a higher chance of not paying them back.

Bill

[1Shirt]

Yep, What MTGun44 said in a short down and dirty reality!
1Shirt:coffee: