Moody's downgraded Irish debt today. It did not really seems to matter to the markets. The European markets are even slightly higher. The pre-Christmas lull may cause this inaction of the market and it seems that even on an tripple witching day we cannot get some action this morning. News that would have cratered the market a few years ago, makes the market go up these days. The times are they are changing. Even Moody's decision to put Spain on debt review for a negative downgrade has no effect what so ever.
This can mean three things:
1) Rating agencies do not matter anymore, because they cannot be trusted,
2) Its christmas and speculators decided lets not rock the boat anymore and wait until the new year or
3) the fact that the EU leaders have agreed on a premanent bailout package makes Ireland's and Spain's rating irrelevant.
I think its a combination of all three.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment