Crikey Says

May 20, 2014

Crikey says: the mythology of credit ratings

A credit ratings downgrade? Bring it on, we say. What the Senate can do with the budget: a Crikey explainer. And Essential reveals what we like (and don't). The life and current tumultuous times of Nathan Tinkler. It's more martial law in Thailand. Telstra's big investment in wireless and why it makes sense. Plus the rich and poor in theatre circles.


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6 thoughts on “Crikey says: the mythology of credit ratings

  1. klewso

    One more Abbott lie – being Abbonomical with the truth?

  2. AR

    To adopt Obama’s rhetoric re capitalists not needing government help for little things like roads & contract law, “you didn’t build it”.
    So, Smoking Joe, tell me again how the “smoking ruins of an economy” that you talk about is AAA rated by all three agencies and this endangered – by your ideological obsession endanger this imprimatur.

  3. The Pav

    That Abbott can’t get this right is hardly surprising. look at his gaffe for the comparison with the first Howard budget.

    Could somebody please please please get through that $12B pa in terest is the equivalent to just 3% of the Federal govt revenue. As a ratio it is laughable that any concern should be voiced.

    The other point about debt is that if a company has no debt then it is accused of having a lazy balance sheet and any gearing level below 50% is considered reasonable. The Govt gearing ratio would be well below that plus on a debt to income basis it would also be well within any conservative parameters.

    Could Crikey please start a section any statement that Abbot has made that is either
    The Truth
    or not a three word slogan.

    I am guessing that such a section would be almost void. Pretty much like the PM himself

  4. Luke Helbling

    Particularly after the GFC (but there have been numerous examples of credit ratings distinct from reality before and since) does anyone with half a brain or any sense of history respect what the clowns at S & P, Moody’s and Fitch have to say about anything? Over 100 years ago Mark Twain noticed that “even if you lined up all the economists in the world, they still wouldn’t come to a point.” I understand we’ve moved past reading entrails and tea leaves but is this really the pinnacle of financial analysis and prediction? Do we not have enough blindfolds and dartboards to improve on their data?

  5. old greybeard

    Why does anyone take any notice of these idiot agencies? These are the guys who rated CDOs as AAA. I suggest they are either crooks or to quote my old dad “Don’t know their head fro their arse.”

  6. klewso

    “Is it the truth, or did Abbott say it?”?

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