• The Political Commentator
Egan-Jones cuts the U.S. debt from AAA to AA+ citing factors that move beyond the current political debate over how the debt ceiling will ultimately be raised!
Who is Egan-Jones and why should anyone care about what its analysts think?
Aren't we waiting for the decisive moves out of Fitch, S&P and Moody's?
Aren't their opinions the ones that really count when it comes to changes in the credit quality of an issuer?
If U.S. debt is still AAA according to them, then isn't that the bottom-line?
As proven in the past, the answer is unequivocally no!
There is an inherent conflict of interest and pay to play atmosphere surrounding Fitch, Moody's and S&P, created when it is a bond issuer who is paying the rating agency.
This system has the effect of causing the rating agencies to be reactive rather than proactive which, at the end of the day, provides absolutely no value-added to the public...
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