Reading the coverage of the decision by one of the ratings agencies to downgrade Irish soverign debt to junk status, one could be forgiven for thinking that this wasn’t an opinion coming from some paragons of impartial virtual who were up to a few years ago rating…oh what is the technical term for them…oh yeah…bags of utter unconscionable shite as triple A investments. Exciting and esoteric financial instruments that allowed loans to be made to people who hadn’t a hope in hell of ever repaying them and for those loans to be all dressed up in the finest of outfits, grouped with other loans of similar stinkitude and then sold across the globe with the stamp of approval of the ratings agencies. A1!
Anyone paying attention to the ratings agency’s downgrading of Ireland is like a family listening to the advice of restaurant reviewers who gave glowing reviews to establishments that poisoned thousands of people, hundreds of whom died as a result as to where to go for Sunday lunch with granny.
Does this mean that everything in the garden of Ireland’s economy is rosy? Not at all, just that nothing much has changed in the last 6 months and for anyone to base their actions on what the ratings agencies have to say would be lunacy. There again that pretty much describes how the masters of the universe behaved in the years up to the keel over of the economic system so I wouldn’t bet against some doing just that.