Moody's cuts Japan rating, blames politics (to Aa3)

Reuters ^ | 08/24/11 | Rie Ishiguro

[TigerLikesRooster]

Moody's cuts Japan rating, blames politics

By Rie Ishiguro | Reuters

TOKYO (Reuters) - Moody's Investors Service cut its rating on Japan's government debt by one notch to Aa3 on Wednesday, blaming a build-up of debt since the 2009 global recession and revolving-door political leadership that has hampered effective economic strategies.

Japan is preparing to elect its sixth leader in five years to replace unpopular Prime Minister Naoto Kan, under fire for his handling of the response to a March tsunami and subsequent radiation crisis at a crippled nuclear power plant.

The downgrade, while not out of the blue, served as another reminder of the debt burdens that nearly all of the world's major advanced economies shoulder. The United States lost its top-tier AAA rating from Standard & Poor's earlier this month, and Moody's warned in June that it may downgrade Italy as Europe's sovereign debt crisis festers.

[TigerLikesRooster]

P!

[TigerLikesRooster]

P!

[AmericanInTokyo]

On some aspects, I will buy it. Particularly the ruling Democratic Party of Japan has just been one big fustercluck, a real can ‘o shit. Where is the leadership to match the greatness of the people!!??

[South40]

Bush’s fault.

[TigerLikesRooster]

Yes, their ineptitude is close to being mind-boggling, although LDP pols do not inspire confidence, either.

[Lurkina.n.Learnin]

I don’t understand. According to Paul Krugman that earthquake/tsunami and that Fukishima debacle should have pulled Japan right out of their economic funk.

Krugman(?): If only the earthquake had done more damage, the economy would have gotten a boost

http://www.freerepublic.com/focus/f-news/2768150/posts

[Borough Park]

Any chance of an early election?

[TigerLikesRooster]

So why doesn’t he advocate a world war?

[sushiman]

Whose idea was the “ consumption tax “ ? LDP .
How about all those outrageous tolls to use the highways ? LDP . Remember all the HUGE scandals like Lockheed ...Recruit ( mostly LPD ) ...Sagawa Kyubin ? And on and on and on ? Who is aggressively advocating an increase in the consumption tax ? Yep - LDP . Very “ conservative of them “ .

[americanophile]

There goes the market.

[Tzimisce]

Too much socialism.

[DB]

Amazing isn’t it.

Only the “highly educated” could believe such nonsense... They can rationalize themselves right off into la-la land and little can bring them back - because they’re smarter than the rest of us no matter the evidence...

[AnAmericanAbroad]

In related new, Moody's Corporate Headquarters suffered extensive damage when it was apparently attacked by an enraged Godzilla, apparently in retaliation for Moody's downgrade of Japan.

[cranked]

Moody’s cuts Japan’s rating because of politics and leaves the US rating as is DESPITE THE HORRID POLITICS that are occurring? LULZ! The AnointedIdiot must have paid off Moody’s while forgetting to payoff S&P..... =.=

[danielmryan]

In related new, Moody's Corporate Headquarters suffered extensive damage when it was apparently attacked by an enraged Godzilla, apparently in retaliation for Moody's downgrade of Japan.

Reaction From D.C.: "Godzilla Valuable Ally In Fight Against Domestic Terrorists."

[FDNYRHEROES]

ROOK....GODZIRRA.... (OK, so my humour is a bit downgrading...)

[ken21]

bump.