Thursday, December 5, 2013

Mayor's Bond Rating

Have to love when politicians think that all their constituents are dumb and uneducated, and run to the press with "good news". Yes, increasing one's bond rating is good, but these days it's all relative.

From The Eagle Tribune:
"The mayor said the upgrade was the result of a detailed financial presentation and tour that city officials gave to representatives of the Standard & Poor's bond rating agency last month. He said the agency called him Tuesday morning and told him it was increasing the city's rating from A-plus to AA — a rare two-level increase."
I wonder if Haverhill's unfunded liabilities and Ponzi structure of pensions was part of that presentation? Not to mention the rating agencies themselves will rate anything you tell them or pay for. Fitch, S & P and Moody's are all paid by issuers whereas an agency like Egan-Jones is paid by investors for ratings. See where the might be a problem? Like I mentioned on The E-T page, they're all being sued, although the courts have stated what they offer is opinion only. In this case, the incriminating emails show that those "opinions" were full of fraud. Some have even gone further stating the "Big 3" are really just a loose extension of whatever the government tells them to say, because these days, the truth must be silenced.

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