Downgrading Moody's

It's all a game really!

The general opinion in Britain is that the rating agency Moody's should get a good dose of downgrading itself. This is the oufit that seemed to think selling toxic loans was a good thing for the financial world. Dirt poor people on welfare being given sub-prime loans! They used to say you couldn't make it up. Now it's all made up and sold to us as kosher policy. Ratings agencies indeed! They couldn't rate a kettle for performance.

So Moody's has downgraded the credit rating of 12 UK financial firms including Lloyds TSB, RBS, Nationwide and Santander UK. The agency said it now believed the UK government was less likely to support some firms if they got into trouble. However, the firm emphasised that the downgrades did not "reflect a deterioration in the financial strength of the banking system".

The system is strong but the government is weak, is that it? If the banking system is so strong how come these banks might get into trouble? All that Moody's is telling the world is that they reckon taxpayers might get the hump if another bailout is required. And you need Moody's to tell you that?

Shysters - one and all!

Posted in: banks,central banks,Moody's,rating agencies