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S&P downgrades Japan's debt rating to negative

12 Comments

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S&P lost its legitimacy long ago. This "downgrading" may affect markets in the short term as players bet on how others will go. Ultimately, Japan owes over 90% of its debt to itself; things will work out.

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Don't these guys have anything other else than rating others!! - Pure Mizushoubai fellows.... Anybody knows who rates these (S)tupid (P)unks?

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"Ultimately, Japan owes over 90% of its debt to itself..."

And because of that some observers think that Japan will eventually "reset" it's massive debt. Major Japanese institutions would have to take a hit.

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Don't these guys have anything other else than rating others!!

No they don't. They're a ratings agency. That's what they do.

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""Ultimately, Japan owes over 90% of its debt to itself..."

And because of that some observers think that Japan will eventually "reset""

Some observers meaning nobody who holds Japanese debt. They keep issuing it and people keep buying it. The last few issues have been way oversubscribed, and the yen can't stay out of the clouds. I dunno, if my choice is listening to a bunch of pinheads at S and P or listening to the market, then that is no choice. These SandP guys are bond trader wannabes. I cannot imagine any lower aspiration.

Besides, people have been hemming and hawing about J debt for years. Remember "Japan is Greece"? That has come and gone.

And another thing, S and P has now invented a "negative rating". What is that? They have AAA, BB, A-1+, and AA-? Seems goofy to me. If they really want to take a stand, why don't they? I suspect it is because they don't want to be wrong.... again.

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take a number: PIGS, Japan, next USA

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Laguna and bakaoyoki -- employing the old "attack the messenger" strategy when you don't like the message, huh? Bottom line S&P is just confirming what everybody already knows -- that the massive re-construction costs will impact a country that is already over-borrowed and lacks the political leradership/will to address the need for additional revenues and the needed structural cuts/changes. And, the fact that 90% of the debt is held internally is old news. The fact is that more of Japan's annual budget is made up of borrowed funds than that generated by taxes. No matter who holds the debt, that is an un-sustainable situation, especially with the population aging, and therefore putting less in postal savings that buys this debt.

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Don't worry, What's her name in Australia said she would bail out Japan in a crisis and that's after all that fire,brimstone and floods Au's has suffered. The IMF are too busy bailing out Europe at the moment . Greenspan is out of retirement up in his loft printing money for Obama san . The standard and poor Chinese will have to take another paycut and up the hours of productivity .

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“Much will depend on Japan’s political leadership and its ability to forge a political consensus on how to offset fiscal measures in the future,” the agency said.

Well, then they're screwed.

Seriously, though, why do people get so touchy when someone points out the fact that the Japanese economy is suffering and the future is in doubt. They are facts; rather than getting defensive for whatever reason I would think trying to help out would be more effective. Denial is not a powerful tool to reverse the debt.

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Yes all these S&P mugs are doing is stating the obvious, and the rating for standard & pooor is poor- they are dick heads anyway and no one with a brain gives a fluffy rats whisker what they say or who they rate.

Trouble is though they can affect the market coz the brainless act on what these losers say sometimes. So they should just shut the clap trap up !!

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"Ultimately, Japan owes over 90% of its debt to itself..."

This is less and less true. With the increasing of the average age of the population, savings rate dramatically dropped over the last 10 years (the Japanese used to be the biggest savers in the world, now they are at the same level as in US). There will undeniably be lower amounts of debt owned by the Japanese population. China started buying Japanese debt. The levels are still modest, but will most likely increase during the next few years.

Japan should hope that the interest rates do not increase, as any percentage point will significantly increase the burden on the budget. If this happens, there might be a time when tax revenue won't be enough to cover debt servicing.

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S&P is just another example of how corporate power drives the world. The old US policy forbidding corporations from existing beyond a mandated project should have been kept. We have unleashed monsters on the world that we can no longer control. And they do not care about the world beyond the ability to exploit it, sell to it or own it.

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