Friday 29 July 2011

Institutions forced to sell if 2 out of 3 main ratings agencies downgrade US from AAA

"Most contracts and regulations that require institutions to buy triple-A rated securities do not force those institutions to sell unless two out of three of the agencies have downgraded". Quoted by Megan McArdle, The Atlantic.
Standard and Poor is talking downgrade but Fitch and Moody say they'll hold the line. If you told me there was collusion, it would be credible.

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