Economics – Jón Frímann Bloggar

desember 6, 2011

The big three credit rating agencies

I see in the news today that Standard & Poor’s is threatening to lower the Eurozone credit ratings. I have found the behavior of the three credit rating companies to be quiet interesting since 2009 or so. There repeated pattern of behavior has that been of trying to prevent economic growth by repeatedly lowering credit rating of those countries how have found a solution to there economic issues. By doing this the credit ratings companies (they are nothing and never have been anything else) have made a bad situation worse in most cases. This for instance is a big contributor to the evolution of the sovereign debt crises in Europe.

This pattern has been repeated so often by all the three credit rating agencies that I am not in all surprised by today news. But the big three credit rating agencies also go up against banks, companies and so forward. That is also a interesting pattern of behavior. But I have not attended to much to that, as I find the pattern of the credit companies trying to collapse the sovereign states in Europe far more interesting.

It is a fact that the three credit rating companies hold total of 95% of the market. That is what I call a monopoly over the market and nothing else. The big three are, Standard & Poor’s, Moody’s, Fitch Group. All this three companies control the credit rating on states, debt and companies all over the world. What they can tell if a country gets out of this recession properly. This unchecked credit rating is raw power at its strongest. This also makes it possible for some investors to make a profit from the recession, as it moves along. Credit rating and connection with the banks and companies also needs to be explored properly. But this credit rating companies are owned by some really rich people and companies in the world. They do have a stake in it how credit ratings are formed and published.

All of this companies are based in the U.S from what I can tell. But for what it is worth. In my opinion, investigation into the credit rating agencies is needed. As there pattern of behavior is not according to logic from what I can tell. As the debt crises and the recession is getting solved. But at every turn the credit rating companies go out and make things worse by ignoring facts about economics, policy making and real numbers. In short, they ignore the facts and figures on what is going on in the world. To what end I do not know. But I suspect that it has something to do with profits somewhere.

I am sorry Mr. Martin Wolf….

I am sorry Mr. Martin Wolf. But you are a idiot. I do not care if you are the ~~editor in chef~~ main economist at Financial Times. You do not know anything about how it is to live in Iceland by using the Icelandic Krona. You do not have to experience inflation up to 100% with the Icelandic krona, but there are only about 30 years since that last happened in Iceland. You don’t have to experience currency restrictions with the Icelandic krona. You don’t have to experience your salary lowered by drop in Icelandic krona up to 50% of its value during the first weeks in October of 2008.

There is a lot that you don’t experience since you don’t use the Icelandic krona. For that reason alone you are just a idiot when you claim that Icelandic krona is all good for Icelanders to use. Since you don’t experience any of the problems using the Icelandic krona in the daily life. The neo-liberals that you speak with in Iceland are full of shit and lies. You apparently believe them, even as fact is going to tell you that this are the people that made a short work out of Icelandic economic during a 5 year period. It did not take them any longer then that to collapse the economic of a whole country. For ignoring that fact, you are a idiot Mr. Martin Wolf.

In fact, you know little about how it is to live with unstable currency that creates mother of all price fluctuation some times. Currency that makes it impossible for companies to plan for the future, since they do not even know what the exchange rate for the Icelandic krona is going to be the next day. What in the next six months.

It is clear that you Mr. Martin Wolf did not have money in the Icesave bank accounts. Because if you did, then you would have wanted the Icelanders to pay what they guaranteed (with special laws) in regards to those deposits. For taking the irresponsible point of a financial scam artist you are a idiot.

You also just oppose the European Union for your own bloody greed, as without the EU you could have made millions in recessions profits. But with the euro and the EU in place it is hard to do this, or even just plain impossible. For this you are not idiot. But unethical bastard how deservers to have its financial exposed and judged by the court if the case warrens it.

Your words do not mean nothing to me from now on. Regardless if they where sad in the past or in the future. As I do not listen to idiots and unethical bastards you profiteer on the recession.

Icelandic news about Mr. Martin Wolf, the unethical idiot.

Ekki í ESB og ekki greiða Icesave (Rúv.is, Icelandic)
Wolf segir krónuna reynast vel (mbl.is, Icelandic) Note: This is the newspaper of the neo-liberals in Iceland. It is on the side of those how profiteers, regardless if it is a recession or not.

Blog post updated at 01:06 UTC on 27 October, 2011

október 20, 2011október 20, 2011

The solution to the sovereign debt problem in Europe and world wide

There is a simple solution to the sovereign debt problem that is now troubling few nations in the Eurozone and world wide. This solution is quite simple and exist quite easy. The solution is that the debt problem nations start to pay off there debt in time and with a plan. They limit or stop borrowing money and start paying off the debt with the income the nations already have.

This means short term cut in service and like that on public level. With with proper planning that should not last no more then 10 years or less, depending on the amount of debt in question.

But there is also the problem with investors that have played the cards in such a way that they make a profit if everything goes to hell in the world economy. Those parties needs to be found and stopped before they make any more damage to the world economy.