"Europe launched a barrage of fire at credit rating agencies Wednesday after efforts to resolve the eurozone's debt crisis were plunged into new turmoil by a severe downgrade of Portugal's debt.
European Union officials and ministers reacted furiously after Moody's Investors Service downgraded Portuguese debt to junk status and warned that Lisbon may need a second bailout.
Europeans were particularly angry over the timing of the ratings cut, just as Portugal begins to implement tough austerity measures in return for a 78-billion-euro EU-IMF bailout agreed in April and as the eurozone struggles to craft a new rescue package for Greece.
(...) The downgrade caused the euro to fall and the cost of borrowing for Portugal shot up, pushing up rates for Spain and Italy as well." (EUbusiness.com - full article here)
However, just a couple of years ago:
"The three credit rating agencies were key enablers of the (US) financial meltdown. The mortgage-related securities at the heart of the crisis could not have been marketed and sold without their seal of approval. Investors relied on them, often blindly. This crisis could not have happened without the rating agencies. Their ratings helped the market soar and their downgrades through 2007 and 2008 wreaked havoc across markets and firms." (Financial Crisis Inquiry Commission, January 2011)
Moody’s and Standard & Poors were giving Lehman Brothers and other companies, triple A ratings right up to the point where they declared bankruptcy. The agencies try to absolve themselves of responsibility by claiming that their ratings represent nothing more than an 'opinion', which raises the question of why the punters should listen to them even now.
Fortunatelly the European Central Bank has decided to ignore Moody's 'opinion' now. "The global economy is still fragile and more work needs to be done in terms of regulating financial institutions other than banks", President Jean-Claude Trichet said. Better late than never!...
Countless protests by the Portuguese people, whose quality of life gets worse every day, took place on the net, such as the above Facebook page created under the motto: "Are you tired of seeing whole nations being fucked up by credit ratings agencies? Are you tired of seeing a bunch of jerks decide the fate of millions so that only a few can get even richer? Make yourself heard!"
Well, I think I've just done my part.
19 comments:
Yes, you have done your part. Thank you. I am starting to understand now. What a mess, it's hard to believe. Good luck with this latest Facebook revolution.
So sick of politics, news organizations, financial trickery. Smoke and mirrors that these power hungry play while we like marionettes dangle. I like your post.
Back to pretty pictures. I read a quote from a photog recently....wish I could cite the source, it went "I don't trust words, I trust pictures". I get it.
The future doesn't look too rosy, does it! Hope it turns around soon; in the meantime, one does what one can with even the smallest gesture. Perhaps the Facebook revolution will make a difference.
Join the club!
I think most of us feel the same way, JM! I know I do and I seriously would like to flip them all off! Thanks for doing your part and I join you!!
Sylvia
Yes it does sound like the Portuguese people are getting tired of the situation JM and well done for voicing your feelings JM.
Your post makes a good point about the irony of the credit agencies being so negligent regarding the financial conditions that led to the 2008 recession for the benefit of some profiteers in the private sector, but are now being more pessimistic regarding public financing.
My attitude is "a pox on everyone's house." Every country and every state has spent more money than it had, all financial institutions made huge mistakes, the economy is nasty everywhere, and there is no easy path out. Tighten your belt and put on your seat belt!
Good for you JM! I get so frustrated everytime i listen to the news and hear how our own government can't seem to come to any resolution to our own financial problems.
It is sickening.
Yes, join the club. Spain may be next.
It is not so easy. Usually nations (and people) are quite good at fucking themselves living happily beyond their means, squandering resources and electing incompetent politicians who are the mirror image of (mostly of) their voters.
Then the moaning start...
Sometimes we have to speak up and hopefully be heard. I wish the Facebook revolution luck. All I know is, I'm pretty sick of the economic status of things right now and I wonder if there's anyone in power who is there for the real people...anyone...anyone at all?
I stand with all of you my friends. Seems like we are all in this together. I guess it's up to us to keep taking photos of the beautiful things and share them with people who just need a little light in their day. Bravo JM, excellent post.
You got that right, my friend. It looks like the same hting is about to happen in this country as in yours, Greece, Ireland and the UK. We have to stop and think about who benefits.
Social networking is great for giving people a voice.
You have indeed and very eloquently.
Nem sei o que dizer! Vivemos num mundo de brutos! E cade vez há mais miséria! Abaixo com o euro!!!
Kudos, José. VP has a point, but at least in the States, those few who lived wisely are paying BIG for those many who lived beyond their means. What galls me most is how bankers - who are the loudest in crying for free enterprise and regulation through market forces - are the ones who were bailed out (welfare) and go scot-free of any responsibility or accountability and are back to flying their private jets while the working people see their quality of life flushed down the toilet. I'll get off my soap box now... :-)
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