The biggest risk to the UK economy, and therefore to the safety of UK sovereign debt, is the clowns running our political system. Heaven help Mark Carney. He has a simply horrible job to do.Coppola Comment
The real meaning of Fitch's downgrade
Frances Coppola
Getting behind Fitch's reasoning of possible default of a currency sovereign. Is it the Lisbon Treaty?
2 comments:
Spending paragraphs telling us the downgrade is based on poor thinking, she then attempts to resucitate the ratings agency by claiming the downgrade is in reality a vote of no confidence in the current government, and therefore should be taken seriously even though it shouldn't be taken seriously for announcing the downgrade.
In other words, simply interpret Fitch's pronouncment in whatever way seems best to you.
After the operationally needless Russian default, maybe the rating agencies have a point about the US and UK, when clowns are in charge. The Tea Partiers actively promote default, and the Cameron govt could decide to abide by Lisbon to stay in the EU even through it would require default. So while default by the US and UK are operationally unnecessary in any case, the plausibility of default by choice remains a factor, however low the likelihood may be.
Post a Comment