Posted on 06/27/2016 6:49:17 PM PDT by RKBA Democrat
Britain suffered further blows to its economic standing on Monday as two top ratings agencies downgraded its sovereign credit score, judging last week's vote to leave the European Union would hurt its economy.
Standard & Poor's stripped Britain of its last remaining top-notch credit rating, dropping it by two grades from "AAA" to "AA" and warning more downgrades could follow.
Fitch Ratings also downgraded its ranking for Britain's creditworthiness by one notch, and similarly said more cuts could follow.
The ratings agencies effectively added a rubber stamp to the market's view of the Brexit vote, as sterling tanked to a 31-year low against the U.S. dollar on Monday and stock markets fell for a second trading day since the referendum last Thursday.
It was the first time S&P had chopped an AAA-rated sovereign credit rating by two notches in one move.
"In our opinion, this (referendum) outcome is a seminal event, and will lead to a less predictable, stable, and effective policy framework in the UK," S&P said in a statement.
(Excerpt) Read more at reuters.com ...
Maybe Barky can sic the US IRS on them.
It appears that the communists have got their mitts on these so called “ratings agencies”.
Watch for the pols to panic and begin trying to negate the vote.
The Transnational Progressives are angry. Like the Borg they are, they just keep telling us that resistance is futile.
I doubt it has anything to do with Brexit other than that it was a convenient opportunity for the ratings companies to downgrade them without being criticized.
I put a buy in for FXB British pound ETF...I am betting long (GTC 121.5)
It will only be temporary. Iceland had less to offer, but the desire to make money in that country won out over punishing it for going bankrupt.
“Watch for the pols to panic and begin trying to negate the vote.”
That’s already being done and at least for now, with the current government, there does not appear to be the will or desire to proceed with the Brexit.
>>It appears that the communists have got their mitts on these so called “ratings agencies”.
The Transnational Progressives control all the “institutions” in the world. That’s why they don’t care that the little people a finally figuring it out. Nothing short of a global French Revolution will stop them.
Oh the big-boy world banks out to get those defiant anarchists....they cannot stand it. Let us hope these financial totalitarians choke on it.
TOTAL BS.
Just one example, Standard & Poor. They contributed to the mortgage meltdown by rating sub-prime bonds as AAA. Bloomberg even reported that they were back to this practice back in 2011.
Sounds more like politics than anything else.
That is exactly what they are doing. It will be entertaining to watch the Elitist Pigs squeal and attack each other when their house of cards comes down...which is happening now.
UK could print the money they want with their own currency, just like the US. If they downgrade UK, they should downgrade US as well
The World is coming apart with just one country voting . Will Merkel Ban The Vote ?
I remember when Bro-Bama caused our credit rating to dip.
https://en.wikipedia.org/wiki/United_States_federal_government_credit-rating_downgrades
The 2011 S&P downgrade was the first time the government was given a rating below AAA. S&P had announced a negative outlook on the AAA rating in April 2011. The downgrade to AA+ occurred four days after the 112th United States Congress voted to raise the debt ceiling of the federal government by means of the Budget Control Act of 2011 on August 2, 2011. Later, the US Government commenced an investigation into S&P’s role in the rating of several mortgage backed securities which played a role in the 2008 financial crisis.[1] In order to mend its relationship with the US government, S&P asked its then CEO to step down, a mere 18 days after the US was downgraded. S&P announced on August 23, 2011 that Deven Sharma would step down as a Chief of Standard & Poor’s effective September 12, 2011, and would leave the company by end of the year.
The downgrade was criticized by the U.S. Treasury Department,[2] both Democratic[3][4] and Republican Party[5][6] political figures, and many business people and economists
...On April 18, 2011, U.S.-based rating agency S&P issued a “negative” outlook on the U.S.’s “AAA” (highest quality) sovereign-debt rating for the first time since the rating agency began in 1860, indicating there was a one-in-three chance of an outright reduction in the rating over the next two years.
Didn’t the U.S. take a hit by one of the rating agencies after some of Barky’s financial magic took hold? Didn’t recall everyone’s panties in a bunch over that.
I think the US and UK are both going to get much stronger.
Just my opinion.
This is the right path, for both countries, I believe.
Nigel Farage said many of the banks bet the farm that Brexit would vote to REMAIN.
Hence the wild swings after the vote, especially in banking. I hope Soros bet huge sums incorrectly too.
Nigel is certain UK will be MUCH better off. I am certain too.
Although if the price of a Mini Cooper came down quite a bit in the US, that would be all right with me.
This, and the drop in stock markets, are nothing more than attempts to punish the UK for throwing off the chains of bondage.
In reality, nothing concrete has happened. British businesses are still carrying on as before, people are still going to work, school, etc., no banks have suddenly failed, the country did not go bankrupt.
All of this negativism is in reaction to an event that is still two years in the future.
It reminds me of when Bill Clinton was elected, and suddenly the press stopped talking down the economy and instead started writing about how great the economy was—when nothing concrete whatsoever had happened to the economy.
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