Talk:United States federal government credit-rating downgrade of 2013
Rationale for downgrade
[edit]The rationale for the downgrade can be found here:
http://en.dagongcredit.com/content/details20_7580.html
http://www.zerohedge.com/news/2013-10-17/chinas-dagong-downgrades-us
Gfcvoice (talk) 11:41, 17 October 2013 (UTC)
This should be deleted
[edit]"Dagong's ratings are hardly followed outside of China. The agency also classifies most countries it follows very differently from major agencies such as Moody's, Standard & Poor's and Fitch."
"Apart from the symbolic meaning of the downgrade, though, Dagong's move is expected to have no effect on markets"
Source: (Reuters)
In other words the downgrade is predicted to have a near zero economic impact. - Knowledgekid87 (talk) 21:16, 17 October 2013 (UTC)
- Knowledgekid, the author of the Reuters piece may think that the downgrade would have no effect markets, but the surge in the gold price suggests otherwise. Regarding Dagong's following, China is a large country in terms of population and GDP. Furthermore its government owns a lot of US Treasuries. Dagong therefore has influence over a large number of people, and significant proportion of investors in US Treasuries. Gfcvoice (talk) 00:55, 18 October 2013 (UTC)
- Right now, gold is at the same levels it was at the start of the month, I would not call that much of a surge. This event is covered in reliable sources though I just do not think it warrents a stand alone article at the very least. - Knowledgekid87 (talk) 11:58, 18 October 2013 (UTC)
- Ignoring the definition of what is or is not a 'surge', the fact remains that in the minutes following the Dagong downgrade, gold increased by 3% or so. Therefore there was a financial market effect of the downgrade. Financial markets are not limited to equities. Gfcvoice (talk) 02:15, 19 October 2013 (UTC)
The content of this article (United States federal government credit-rating downgrade of 2013) is covered in United States federal government credit-rating downgrades and therefore I am merging the United States federal government credit-rating downgrade of 2013 article into United States federal government credit-rating downgrades. Gfcvoice (talk) 02:15, 19 October 2013 (UTC)