so here is an interesting question ...
they cut the rating by two notches, um did they just notice that things were bad?
was there a time when they should have cut by one notch, but didnt? why not?
or did things get bad really quickly?

wait a second
isnt the WHOLE point of the ratings to be predictive? to be used to set loan rates?
so Belgium went from X to X-2 in one day?

this is why we are in such a farking mess.
Greece???? No one saw that coming? No one had a clue how farked up things were?
(sure, I understand that Greece had some help perpetuating a fraud, but still ...)

This is exactly the problem with the credit agencies. Belgium has shown absolutely zero problems in paying off their debt, but they've decided to make a political point and cut them anyway, facts be damned.

CujoQuarrel: They're being predictive.

Even if you are currently making your payments if the credit agency looks at your outstanding debt and says 'Geez, he owes a metric buttload there's no way he can keep making payments' they lower your score.

Except the guy in question has a good credit rating and low interest, and reliably makes payments on time even when his life is in tatters, as Belgium's government has been for some time.

We're all about to get Belgiumed.

jjorsett: GAT_00: CujoQuarrel: They're being predictive.

Even if you are currently making your payments if the credit agency looks at your outstanding debt and says 'Geez, he owes a metric buttload there's no way he can keep making payments' they lower your score.

Except the guy in question has a good credit rating and low interest, and reliably makes payments on time even when his life is in tatters, as Belgium's government has been for some time.

As I learned in a class on lending, there's two factors to consider about a borrower's likelihood of repayment: ability to pay and willingness to pay. You can have as much of the latter as you want, but if the former isn't there, you're not getting your money back.

Has Belgium shown any inability to repay?

GAT_00: Has Belgium shown any inability to repay?

Link (new window)

compare japan's debt load to every other country in the world. Clearly, debt ratio isnt enough, right? Otherwise Japanese debt would be at junk bond levels.

wildcardjack: I can't believe they don't filter the most offensive word in the galaxy on Fark.

It's bad enough a whole country uses that word for a name.

You leave the good people of Waffletopia out of your slanderous claims!

Watching_Epoxy_Cure: I think Belgium, and other nations (Portugal and Ireland) are getting screwed--they have acted responsibly. But the Euro was always a doomed idea without actual fiscal union and this is how it's playing out.

worse, they decided to let fiscally retarded countries into the union. sorry, but if your response to this problem is to BLAME germany, you are fiscally retarded. (looking at you greece and italy)

without a stronger central "power" there is nothing to stop the prisoners dilemma.
so in the end, everyone suffers.

Strange, the two countries which are most likely to come out of this the least damaged are England (still on the pound) and Germany (strong economy)

The best solution to this needed to happen the day that they discovered Greece had been cooking the books. They should have kicked Greece out of the union on that day, gave notice to the rest of the flaky countries to shape up or ship out.

Instead, YAWNNNNNNNNNNNNNNNNNNNNN they talked and talked and talked.

Sorry Greece, but you are getting punished for your fraud, as you should. Sorry Greeks, but your government, your problem.

/sigh