Wednesday, August 17, 2011

Jim Rogers: S&P and Moody's Have Never Been Right - Bull Source

Investor Jim Rogers gives his reaction to Standard & Poor’s decision to lower America’s credit rating from AAA to AA+, and offers his thoughts on the global recession.

“The United States has not been a AAA credit for a long time, and the only people who don’t know that apparently are Standard & Poor’s, Moody’s, and the US government.”

Rogers pays no attention to the rating agencies. Three years ago, Standard & Poor’s and Moody’s said that subprime loans were AAA, Rogers points out. The agencies also ranked AIG, Fannie Mae and Freddie Mac as AAA until the day they went bankrupt, he notes.

Rogers says the first global recession hasn’t ended. Eventually, the US will default, he believes, possibly by inflating away its debts with worthless money.

Jim Rogers

Warren Buffett

Nouriel Roubini