S&P downgrades Japan's outlook to 'negative'

S&P downgrades Japan's outlook to 'negative'

money.cnn.com

S&P said late Tuesday that its revision to the nation's outlook, to "negative" from "stable," reflects the possibility of a downgrade, as Japan grapples with the specter of increased deficits in the wake of a deadly earthquake, tsunami and nuclear power plant disaster.

(visit the link for the full news article)

Well. All eyes on "The Fed" today in the money world. And now Japan's credit rating is down, too.

Who is it that runs the world? Is it the S&P? How did they get to be so powerful to be playing "duck duck goose" with the entire world economy?

Does anyone know who "The S&P" even is? I mean, people-wise? I admit here I do not, but I have only just starting studying the stock market.

And what does this mean for the Global Meltdown, NWO thing?

money.cnn.com
(visit the link for the full news article)

Isn't S&P one of the companies giving Triple AAA ratings to the derivative mortgage game before big economic crisis in 2008 ?

Ah, and here we find at least one name: Swann

finance.fortune.cnn.com...

Nikola Swann knew that he would be thrust into the firestorm raging in Washington D.C. over America's growing debt burden.

"S&P does not try to influence policy for any sovereign credit, but politics does influence creditworthiness," says Marie Cavanaugh, an S&P sovereign credit analyst and member of the company's criteria committee.

Wonder if these folks are Bilderbergers?

reply to post by wildtimes


Standard & Poor's is owned by McGraw Hill, which also has a substantial hold in college/university textbook markets...

Originally posted by wildtimes


Well. All eyes on "The Fed" today in the money world. And now Japan's credit rating is down, too.

Who is it that runs the world? Is it the S&P? How did they get to be so powerful to be playing "duck duck goose" with the entire world economy?

Does anyone know who "The S&P" even is? I mean, people-wise? I admit here I do not, but I have only just starting studying the stock market.

Ofcourse it's not S&P. S&P is merely a tool used by the rich banking elite (and thus the US governent), like all the other credit rating agencies (the most prominent are all US-based). They helped cause the turmoil in Greece, Portugal while Japan and the US were left alone. Strange, right? Look at this thread of mine:

Originally posted by Mdv2
It has become a habit, reading about the downfall of the Euro in the daily newspaper. After years of appreciation against the Dollar the Euro has now began to fall rapidly, even though economic indicators are not all that bad. They say it is Greece that made the Euro waver, which is to some extent true, but is the fear that caused this volatility well-grounded?

The Greek economy only accounts for approximately 2,5% of the entire Eurozone economy. Therefore, one would wonder why the Greek woes have affected the Euro's stability so badly. Among the reasons is speculation, more specifically naked short selling, which in very simple terms works as follows:

Quick refresher on how short selling works. Shorts borrow a share, sell it immediately, then if the bet pays off they later buy it back at a lower price, pocket the difference and return the share to the person they borrowed it from.

Naked short selling is when an investor essentially shorts a stock that he hasn’t actually borrowed. During the worst of the financial crisis some corporate executives blamed the tactic for their companies’ plunging stock prices. In the U.S., regulators put new temporary rules in place to curb the practice in the fall of 2008. That rule was made permanent in July 2009.

Why is a naked CDS different from a naked short sale of bonds and stocks?

Buying a credit default swap in effect buys insurance against the risk of a default by either a company or country. This is essentially a short sale, since the holder profits from the contract if the entity does default. Even before that happens, the CDS holder benefits if the outlook for the entity deteriorates, because the insurance premium for that default risk will rise and the holder can profit by selling the insurance and closing out their trade.

Some investors holding debt issued by an entity buy credit insurance to protect their portfolios from such a risk, but most buying comes from investors who simply want to express a negative bet. As such, buying credit protection without owning any of the entity’s debt is a “naked” short bet. source

This explains why large hedge-funds benefit from negative news about their ''victim''. Greece is solely responsible for the weak economic condition it is in, which made them a suitable target for hedge-funds, which opened a large-scale attack on the country and the Euro, which almost caused Greece to collapse only barely averted by the EU and IMF's bail-out package.

I've often wondered why credit rating agencies haven't downgraded the ratings of the US, Japan and the UK. After all, they are not in a situation that is much better than that of Greece or Portugal for that matter. Moody's has merely threatened to downgrade the credit ratings of the UK and US while they actually did do it to smaller economies such as Greece and Spain. Do you wonder where Japan on this graph is? They are literally off the chart with enormous debt and a huge deficit.

Yet, they remain to have a triple A credit status. How, on earth is that possible? If they would downgrade the credit status of, for instance, Japan, they would never ever be able to pay off their debts and that would effectively usher in their bankruptcy. There is no need to discuss the sequel of their collapse. For the very same reason, they cannot downgrade the status of the US and to a lesser extent that of the UK. This confirms that credit rating agencies are market manipulators.

As a result, countries like Italy and Spain are made to face the consequences of their poor economic performance while others that perform as bad are deliberately protected. So we have credit rating agencies and hedge funds, which are among the important factors determining the destiny of a country. If you are on their cross hairs, you are unlucky.

The mainstream media is another important factor. As explained previously, they are used as a tool to worsen the financial woes in a certain country by increasing volatility through stirring up the market sentiment.

Especially the British and US press are guilty of deliberate rousing. This is a good example from ABC NEWS EU Turns to 'Nuclear Option' to Halt Euro Speculation

Until a couple of weeks ago, the EU had no need yet to create money out of thin air until it had no other options left than doing so with its aid package of 1 trillion Euro. The British and US economy are having a big time feasting on this news. The Eurzone is using the nuclear option is what they say... but what they fail to mention is that the US has been doing this already for twelve months with approximately $1500 billion a year and the UK does the same with $200 billion / year. They are deliberately putting the focus on Europe and hence vastly contribute to the man-made creation of the Euro crisis while keeping their own countries remain into the shadows, because if you consider the severity of the financial woes in the US and UK, it would have made more sense if we would have had a Dollar or Sterling crisis. Until a couple of months ago that was the case. The fears of a Dollar collapse where greater than ever, until they found themselves a perfect target of distraction from their own financial problems: Greece.

What they did is exactly similar to what the press did to Toyota. They have exaggerated the news so badly that no American wants to buy a Toyota anymore, whereas their recalls where not out of the ordinary. Every car manufacturer has recalls. It comes as no surprise that the traditional US car brands recently announced that they are heading into the right direction and are growing healthy again, partly at the expense of Toyota, thanks to the media hype.

Who is next? Hungary, but eventually reality will meet the Dollar as well. The financial woes in the US are bigger than ever before, the importance on a global level of its economy is known, making it only a matter of time for the Dollar to cotinue its downfall.

Japan should have been downgraded a long time ago as does the US. Why it hasn't happened is clear, why it is happening now isn't. Perhaps this is the beginning of the end.

reply to post by xavi1000


Hong Kong to regulate credit rating agencies from June 1
SINGAPORE, April 25 | Sun Apr 24, 2011 11:41pm EDT


www.reuters.com/article/2011/04/25/hongkong-ratings-idUSL3E7FP08X20110425

(Reuters) - Hong Kong is to bring in new regulation for credit rating agencies on June 1, requiring them and their analysts to be licensed by the city's securities regulator.

The move follows the agreement by the Group of 20 leading economies to step up supervision of credit rating agencies, which were blamed for failing to spot risks attached to complex financial instruments in the run-up to the financial crisis.

(...)

reply to post by jjjtir


Sounds like the first steps to an official globally regulated credit rating agency.

Who wants to bet it will be run out of Switzerland and be attached to the G-20's Financial Stability Board and the Bank for International Settlements?

reply to post by Mdv2


Interesting stuff indeed - thanks for that.
Now, if S&P - as I have just learned is the merger of Standard Statistics with Poor's Publishing - is owned by McGraw Hill, which is a global publishing firm. Hmmm.
And - why are they so alll-knowing? Just because of their predictions in the stock market?

Then it seems to me that they are part of what's creating the problem in the first place - disinfo agents?
Wow.

Can the world just decide to start ignoring them? Or revolt against them?

I dunno. A bank run would be interesting, especially if it coincided with Bernanke's press conference today.
Again. Wow.

This isnt that big of a deal for Japan, unlike the US Japan's debt is self financed, so they dont rely on the bond markets to get there money.

reply to post by lokdog


The vast majority of US debt is also "self financed".

Of the $14 trillion plus debt, only $4 trillion is foreign debt. The other $10 trillion is all public.

Originally posted by wildtimes

S&P downgrades Japan's outlook to 'negative'

money.cnn.com

S&P said late Tuesday that its revision to the nation's outlook, to "negative" from "stable," reflects the possibility of a downgrade, as Japan grapples with the specter of increased deficits in the wake of a deadly earthquake, tsunami and nuclear power plant disaster.

(visit the link for the full news article)

uhhhhhhh, no sh*t!? Even I could have said that in my own article

reply to post by MikeboydUS


Thats a fact and often makes me wonder when people claim China owns the USA just what the heck are they talking about.