Friday, August 26, 2005
Notes And Nattering
Moody's Investors Service cut its ratings on Ford Motor Co. (F.N: Quote, Profile, Research) and General Motors Corp. (GM.N: Quote, Profile, Research) to junk status on Wednesday, the latest blow to the automakers as they battle global competition and rising costs.and:
Moody's cut Ford's senior unsecured ratings by one notch to "Ba1," the highest junk rating, from "Baa3." It cut the senior unsecured rating on Ford's finance arm, Ford Motor Credit by one notch to "Baa3," the lowest investment-grade rating, from "Baa2." The rating outlook for both companies is negative, meaning another rating cut is likely over the next 12 to 18 months.Mover Mike has been writing very well about this and other financial trends. I strongly recommend this particular post from yesterday:
Moody's cut GM's senior unsecured debt rating by two notches to "Ba2," the second-highest junk rating, from "Baa3." It cut the rating on General Motors Acceptance Corp. by two notches to "Ba1," the highest junk rating, from "Baa2." GMAC is GM's finance arm.
The NY Fed has called a special meeting for 14 companies who dominate the credit-derivatives market. The 14 companies include JPMorgan Chase & Co. (NYSE: JPM), Deutsche Bank AG (NYSE: DB), Goldman Sachs Group Inc., Morgan Stanley (NYSE: WMD) and Merrill Lynch & Co. (NYSE: MER). There have been allegations of illegal naked short selling, and regulators are smarting over allegations that they gave super hedge funds a free pass because regarding "fails to deliver" (FTD).Sigmund, Carl and Alfred found a brilliant scholarly insight - A Washington University study claims that daydreaming leads to Alzheimers. Go over there and read it. The comments are quite funny.
Dr. Sanity sails into the media for their skewed coverage of the situation in Iraq and observes that it has consequences.
The Weasel Watchers Council has spoken. The winners were excellent but so were all the submissions. I particularly recommend Cutler's Yankee Station's post regarding appeasement. He looks at the situation pre WWII in Britain and France and comments:
The appeasers then made the same mistake that appeasers do now. They assumed that the opposition was somewhat reasonable, had a limit to his demands, and would become responsible when those demands were at least partially met. In reality, Hitler had and militant Islam has ultimate goals that are unreasonable and cannot ever be made right. We fundamentally cannot coexist with either of them, therefore they must be destroyed.If you go and read the Iraqi constitution, it looks like the Iraqis have concluded the same thing.
Iowahawk is back in action. There are several new posts. Don't fail to read about Michael Moore's encounter with destiny. BlameBush goes to town, having just discovered a new Rovian plot. And Ferdinand is thinking deep thoughts over at the Conservative Cat:
In science, you collect facts and use them to determine the truth. In politics, you decide the truth and try to find facts that prove it. This means it was probably a mistake to put politicians in charge of science.The heart quails at the realization that lawyers are now trying to take control of any science still free from political control. The end may be nigh.
They aren't showing much imagination.
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