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Strategies & Market Trends : Booms, Busts, and Recoveries
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From: Haim R. Branisteanu3/25/2010 12:50:19 AM
1 Recommendation   of 74559
 
Why I think that the US rating agencies are corrupt as are ALL of US financial markets - It is obvious that the whole "hoopla" with the PIIGS and lowering their credit rating IS POLITICAL driven!! See below

10-Yr Benchmark Govt Yields - U.S. vs Other Nations

              Current     --------------  Spread in Basis Points  ----------- 
               Yield       Today   Prev Day   Week Ago   Month Ago   Year Ago 
 
U.S.          3.833 % 
Australia     5.793 %      196.0      183.7      196.2       184.9      187.6 
Austria       3.510 %      -32.3      -35.2      -14.2        -9.4      129.0 
Belgium       3.605 %      -22.8      -23.0       -2.0        -2.7      123.1 
Canada        3.535 %      -29.8      -30.4      -22.5       -29.3       17.4 
Denmark       3.393 %      -44.0      -45.8      -27.1       -22.9       75.2 
France        3.438 %      -39.5      -41.3      -22.9       -24.8       86.7 
Germany       3.098 %      -73.5      -75.3      -54.2       -52.7       36.0 
Japan         1.371 %     -246.2     -250.7     -230.8      -245.3     -150.7 
Netherlands   3.366 %      -46.7      -48.5      -27.7       -24.6      103.0 
Portugal      4.333 %       50.0       48.2       61.9        80.9      183.1 
Italy         3.938 %       10.5        8.7       27.3        28.6      159.0 
Spain         3.866 %        3.3        1.5       20.7        22.0      134.1 
Sweden        3.158 %      -67.5      -69.3      -45.3       -45.0       36.3 
U.K.          3.964 %       13.1       11.7       29.8        43.8       48.2

See the market prices of 10 year notes - US and Spain at same yield!!

More so the spread to 3 month notes or FED/ECB funds is higher in the US by 3/4% as such one can claim that US 10 year notes trade at same spread as Portugal and still the US has a AAA rating even that the market price it at AA-

Yield on US 3 month bills is 0.13% v. 3.833 for the 10 year notes or a 3.7% spread.

ECB interest rates are 1% v. Portugal 4.33% and German bills are 0.30% spread is 4% (as I did not found Portugal 3 month bill yield)

Aside I posted earlier the unemployment in US cities - in too many cases not much better than Spain or Portugal. Aside saving rates there are meaningful higher

So before getting all excited - please compare apples to apples
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