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Greek bonds are about to mature and there is no money. Without some deal, which wasn't forthcoming because of the fallout in German elections, then Greece would
by acg 16y ago
Greek bonds are about to mature and there is no money. Without some deal, which wasn't forthcoming because of the fallout in German elections, then Greece would have to default.
If this is not reported in the rating then the Agency has no credibility.
- rue 16y agoAgreed. It is, however, quite possible for a rating agency to influence the value of various things inadvertently or on purpose.
- va_coder 16y agoIf reason and sound research leads them to a conclusion that does influence I say all the better. It was the concern you described that led them to do nothing from 2004-2007.
- acg 16y agoI find it difficult to believe that these agencies operate independently from politics. Borrowing of recent years would seem to confirm some of this. Agencies seem to form part of the political landscape. In this case the agency is used as a means to apply political pressure: both on Germany to form an unpopular deal and Greece to accept terms. To me this looks to be part of political pressure applied by Washington on the IMF, Greece and the Eurozone. I'm sure the politicians want to act but any measure is going to be unpopular with one electorate or another. It's a political play for the consumption of the European electorate.