DUBLIN – Moody’s slashed Ireland’s credit rating five notches on Friday and warned of further downgrades if the country cannot regain command of its debts and tame its deficit.
The first thing I thought when I read the above is, “Does anyone take seriously what Moody’s has to say about Ireland’s, debt, or any other entity’s debt for that matter?” Does anyone even care how Moody’s rates anything? After the rating agency’s corruption in the financial scandal and ultimate collapse of 2008, why is it still in business? In my eyes, Moody’s is the poster child for the needed financial regulation still to come.
Maybe it’s me, generally, or maybe it’s because it’s Friday after a long week, or maybe it’s because it is cold and rainy outside and I just got in from feeding in the cold and rain, but I am in a cranky mood. Even the thought that it is Friday doesn’t seem to pull me out of my crankiness.
Now that I think about it, I might be cranky because I didn’t get much sleep last night. Some nights are like that – toss and turn and try not to look at the clock. Interstingly, though, I can’t put my finger on any specific anxiety. In fact, I am feeling pretty optimistic these days, as you might guess from my recent columns.
European leaders will gather in Brussels to seek a permanent financial rescue fund to calm markets for good and turn the page on a roller-coaster year marked by Greek and Irish bailouts and fears for Spain. The Euro rebounded briefly after Madrid conducted a successful bond auction, in a eurozone sovereign bond market heavily skewed by the readiness of the European Central Bank to buy up government debt, as an exceptional step to defend the eurozone.
See what I mean? Even though Moody’s lame attempt to be relevant irks me, and makes me wonder if we will ever get a handle on the tilted playing field we call the market, my optimism still wins out, which means I really have no reason to be cranky.
Things are getting better, even if Moody’s tries to inflate its own importance. So, in the end, I need to chill and see Friday for what it is – the last day of the work week, which means I can put my overworked brain to rest. That way, when I turn my attention to my next project, I will be refreshed and clear. Oh! My next project is the question below. I intend to invest some serious thought into this one, as we all need to think about this next year coming up.
Which sectors do you think will perform well in 2011?
Trade in the day; invest in your life
