Out Fox The $treet

Interesting to see a Chinese Rating Agency downgrade the US sovereign debt rating when the US rating agencies have been unwilling or unable to make such a move. Its clear that the US doesn't deserve the highest credit rating with $14T of debt growing at an alarming rate. Not to mention a government unwilling to make the tough spending cuts. The Dagong Global Credit Rating agency (never hear of them) cut the credit rating to A from A+. Not even sure from the report whether the highest rating for them is AAA as well. Assuming so they had already downgraded the US several levels prior to this move. What is ironic is that Franklin Templeton complained about the Chinese rating agency lacking transparency. Really? What about lack of accuracy by the big three firms - Moody's, S & P, and Fitch? Not sure why the obsession still exists with agencies proven to lack independence. Another interesting point is that China is the largest holder of US Treasuries. Downgrades of US deb...

Interesting results from this poll of the day from CNBC.com. Should the U.S. Have a 'AAA' Rating? Only 464 people votes so far, but a resounding 79% voted NO. So a majority of investors feel that the US shouldn't have a AAA credit rating. Lots of economists argue that the US won't ever default no matter the debt levels because we can always print more money. Regardless a AAA rating is reflective of an countries ability to repay debt and the more borrowed the more risk that has to exist. Personally I don't understand how an investor would buy US treasuries as if we could never default. It also highlight the continued issues with the credit agencies. They are just now downgrading the US to negative watch for a potential downgrade in two years. When everybody else seems to think they are already behind. Nothing new here as the agencies are very good at telling us what we already know. Any official downgrade would never happen until the media in general already a...