velu Posted June 12, 2012 Posted June 12, 2012 Ratings :hehe: When Lehmann Brothers collapsed in bankruptcy, their rating was AA. Just read this on twitter. some need to rate these rating agencies :hehe: Though the rating are taken seriously in the west by investors and traders, they are responsible for the sub prime mortgage crisis to some degree. Worst part is indias rating is worse than portugal and spain. :facepalm:
Swing_n_Speed Posted June 12, 2012 Posted June 12, 2012 Brazil Russia Indonesia China Not Indonesia .......India
Swing_n_Speed Posted June 12, 2012 Posted June 12, 2012 some need to rate these rating agencies :hehe: Though the rating are taken seriously in the west by investors and traders, they are responsible for the sub prime mortgage crisis to some degree. Worst part is indias rating is worse than portugal and spain. :facepalm: :two_thumbs_up: Being saying it all allong. Tell these rating agencies to go shove it.
Swing_n_Speed Posted June 12, 2012 Posted June 12, 2012 I started buying gold in the last few months. Push comes to shove, its better to have money in a commodity which has intrinsic value and is less prone to global shocks. That being said, I am confident we will pull through, provided the government takes some steps to push through stalled reforms. If the election sentiment takes over, it is going to be a stormy affair The government is spineless, but the opposition is no better either. Why did they block FDI is retail? I read the article and the article linked above and they have cited the FDI instance as a factor which was inputted into the rating downgrade. But I do agree with the report in one aspect. Too many populist schemes and unnecessary spending. Remember Mayawati spending crores on her status and parks? That money would've bee better spent in so many way.Such irresponsibility will eventually cost us dear. I also agree with the bottlenecks in many investment sectors. But really China apart on the corruption and bottleneck index how are Russia and Brazil better than us? Give me a break. They are both just as bad. I'm willing to wager S&P is merely working on behalf of spurned investment/foreign companies who wanna get a foothold in India. I wouldn't be the first time that American rating agencies adopted a biased stand.
ganeshran Posted June 12, 2012 Posted June 12, 2012 LOL if India is downgraded (which btw hasn't happened), the cost of raising capital goes up, a lot of funds are not allowed to park their money in countries which are not investment grade which sees capital leave the country. It has a real impact, not just some imaginary concept that can be wished away This report is an extension of the warning given in April when the outlook was downgraded, the rating is still investment grade and its probably the last warning for the government to get its act together. There is a review in RBI next week, an interest rate cut is on the cards.
asterix Posted June 12, 2012 Posted June 12, 2012 RBI can't bail out everytime..The Govt. has to become very 'unpopular' to pull out something..Which the Govt. can't afford as the stakes are very high..
Swing_n_Speed Posted June 12, 2012 Posted June 12, 2012 LOL if India is downgraded (which btw hasn't happened), the cost of raising capital goes up, a lot of funds are not allowed to park their money in countries which are not investment grade which sees capital leave the country. It has a real impact, not just some imaginary concept that can be wished away This report is an extension of the warning given in April when the outlook was downgraded, the rating is still investment grade and its probably the last warning for the government to get its act together. There is a review in RBI next week, an interest rate cut is on the cards. Fair Enough! Blindly regurgitating finance textbooks a valid debate does not make. So what do you want the government to do? Be hostage to a rating agency with a dubious track record? More people would trust the agencies if they hadn't got so much so wrong so recently. In 2009 Moody's issued a report titled "Investor fears over Greek government liquidity misplaced"; within six months, the country was seeking a bailout. Meanwhile, S&P's sovereign debt team miscalculated US debt by as much as $2tn when it downgraded America's credit rating last August. Besides UK and USA too had lowered ratings. It didn't really affect the cost of borrowing. Yea perhaps our equity markets may take a hit, insurance cos may see a few rumblings but for major government projects there is no shortage of funds. I worked with consortium's of banks on the Kochi Metro Project. I can assure you everyone is more than interested in investing in our economy. It's preposterous that these credit rating agencies wield so much power that they can virtually dictate fiscal policy.... 'Either do what we suggest or you lose your AAA rating' and yet when they get it horribly wrong, they just shrug it off and move on. http://www.bbc.co.uk/news/business-17021986 http://www.guardian.co.uk/business/2012/feb/15/credit-ratings-agencies-moodys http://www.guardian.co.uk/news/datablog/2010/apr/30/credit-ratings-country-fitch-moodys-standard
jairamesh Posted June 12, 2012 Posted June 12, 2012 Brazil Russia Indonesia China Not Indonesia .......India :hysterical: Please stop being funny, this is serious matters.
gs Posted June 12, 2012 Posted June 12, 2012 Related article from BBC: India's industrial output grows less than forecast This takes the cake! "The paramount political power rests with Sonia Gandhi, who holds no cabinet position, while the government is led by an unelected prime minister, who lacks a political base of his own," S&P said.
ganeshran Posted June 12, 2012 Posted June 12, 2012 Fair Enough! Blindly regurgitating finance textbooks a valid debate does not make. So what do you want the government to do? Be hostage to a rating agency with a dubious track record? More people would trust the agencies if they hadn't got so much so wrong so recently. In 2009 Moody's issued a report titled "Investor fears over Greek government liquidity misplaced"; within six months, the country was seeking a bailout. Meanwhile, S&P's sovereign debt team miscalculated US debt by as much as $2tn when it downgraded America's credit rating last August. Besides UK and USA too had lowered ratings. It didn't really affect the cost of borrowing. Yea perhaps our equity markets may take a hit, insurance cos may see a few rumblings but for major government projects there is no shortage of funds. I worked with consortium's of banks on the Kochi Metro Project. I can assure you everyone is more than interested in investing in our economy. It's preposterous that these credit rating agencies wield so much power that they can virtually dictate fiscal policy.... 'Either do what we suggest or you lose your AAA rating' and yet when they get it horribly wrong, they just shrug it off and move on. http://www.bbc.co.uk/news/business-17021986 http://www.guardian.co.uk/business/2012/feb/15/credit-ratings-agencies-moodys http://www.guardian.co.uk/news/datablog/2010/apr/30/credit-ratings-country-fitch-moodys-standard Regardless of the motives of the warning, or the credibility of the rating agencies, two things are clear 1) There is policy paralysis in the government with respect to economic reforms - whether its from within the government or because of allies like TMC - the government isnt able to implement reforms freely. It doesnt take the rating agencies to tell us this 2) Any downgrade which happens has implications on the economy. we cannot argue with the investors who would take their money out in the event of a downgrade, that the rating agencies are biased. USA's ratings are down from AAA, it makes less of a difference to them than to us because our rating is at the lowest level of investment grade I have confidence in our economy - given our young demographic and the steady urbanization over the last few years. However, the government cannot just sit back and implement irresponsible policies, hoping that our potential will take us through. Like NRN said today, only if the government becomes an active facilitator in the process, can we achieve > 8% growth every year.
Swing_n_Speed Posted June 12, 2012 Posted June 12, 2012 :hysterical: Please stop being funny' date=' this is serious matters.[/quote'] Fine Fine it's Iran
Needforspeed Posted June 13, 2012 Posted June 13, 2012 Fine Fine it's Iran No thats part of the PRIC. Pakistan Rwanda Iran Congo.
Recommended Posts