What you already know about China-based Dagong Credit Rating is that it’s caused quite the kerfuffle over sovereign debt ratings by ranking China higher than the US and other developed countries, like the UK and Japan, based on a formula assigning more weight to the fiscal health and GDP growth of countries.
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China’s Dagong Credit Rating Agency Steamed Over NRSRO Delay
Filed Under: Gold Fundamentals, Stock Market Commentary, U.S. Dollar Tagged With: Banking, china, credit ratings, Dagong, Debt and Deficit, DR EXTRA!, emerging markets, Featured, Markets, Nationally Recognized Statistical Rating Organization, NRSRO, Rocky Vega, SEC, US
Rating Agency “Reform� Cut to “Study�
When it comes to the post-crisis world of American finance, there’s one thing we can all agree on:
Something’s got to give when it comes to ratings agencies.
Over the past decade, we’ve all witnessed the “big three’sâ€� role in the credit crisis. S&P, Moody’s and Fitch gave their famous AAA ratings to an array of troubled securities, companies and nations. Not only did they issue the wrong ratings – and correct those ratings far too late – but their dubious business model was put under the spotlight, too… ripe with conflict of interest and suspicious relationships with their Wall Street clients.
[Read more...]The High-End Market Moves Down
The non-recovery seems to be gathering momentum. Almost every day we receive fresh evidence of economic non-growth and non-vitality.
It’s true; the economy does manage to get out of bed every morning. Some folks applaud this fact and declare, “Aha! A recovery!” Other folks, like your California editor, observe that the economy usually crawls right back into bed after brushing its teeth. Your editor sees no recovery. He sees a coach potato with a very bright smile. He sees an economy that still lacks essential qualities like jobs, corporate revenue growth and credit.
[Read more...]Filed Under: Gold Fundamentals, Stock Market Commentary, U.S. Dollar Tagged With: credit ratings, credit scores, Debt and Deficit, distressed markets, Economic Recovery, Featured, high end market decline, Housing, liar loan portfolios, Markets, prime mortgage foreclosures, Recession, subprime foreclosures, The Daily Reckoning
AAA Ratings: A Grim Fairy Tale
How the ratings agencies have managed to emerge from the credit crisis unscathed and unregulated is a mystery…and a sham.
“Nothing is ever clear or certain in public,� we wrote in The New Empire of Debt. “Every error is someone else’s fault. That is why so many men prefer it. The public world is so surrounded in fog that he thinks he sees half-naked nymphs behind every tree and $100 bills under every cushion.�
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