Minister says long-term rating cut is "justified"

My hat is off to the Serbian politicians on the credit rating, and please let's stop pointing fingers at other parties, because it's been the same cast of characters running ex Yu/Serbia for 20 years now. Weren't you all sitting in the same parliament? With a BB- credit rating, that places Serbia in the elite economic powerhouses as Vietnam, Surinam, Paraguay, Georgia, Gabon, Bangladesh, and Mongolia. Keep up the good work Belgrade, and one day we will even be looking at Albania with envy.

I agree entirely with the Minister that the long-term rating cut is justified

"If it wasn't so tragic it would be funny. Dinkic saying that a credit rating cut for Serbia is justified! "
(bganon, 8 August 2012 01:29)

Even more funny is that Dinkic leaves out another reason mentioned for the downgrading, the attack on the independence of the national bank by the new government, openly shown by replacing the chief with a person of their own party.

If it wasn't so tragic it would be funny. Dinkic saying that a credit rating cut for Serbia is justified!

When the French were threatened with a rating cut, the busily produced evidence showing that the British were more worthy of a cut. In Serbia we argue to be downgraded!

Hell, why not ask ratings agencies to relegate Serbia further to the bottom of the pile. Good job Dinkic!

"...politics and the markets always interact. The very foundation of the market -- the limited liability corporation -- is political. What many take as natural is actually a political contrivance that allows investors to limit their liability. The manner in which liability is limited is a legal issue, not a market issue, and is designed by politicians. The structure of risk in modern society revolves around the corporation, and the corporation is an artifice of politics along with risk. There is nothing natural about a nation's corporate laws, and it is those corporate laws that define the markets.

There are times when politics leave such laws unchanged and times when politics intrude. The last generation has been a unique time in which the prosperity of the markets allowed the legal structure to remain generally unchanged. After 2008, that stability was no longer possible. But active political involvement in the markets is actually the norm, not the exception. Contemporary investors have taken a dramatic exception -- the last generation -- and lacking a historical sense have mistaken it for the norm. This explains the inability of contemporary investors to cope with things that prior generations constantly faced."

Read more: Financial Markets, Politics and the New Reality | Stratfor
http://tinyurl.com/cxhhktz

My hat is off to the Serbian politicians on the credit rating, and please let's stop pointing fingers at other parties, because it's been the same cast of characters running ex Yu/Serbia for 20 years now. Weren't you all sitting in the same parliament? With a BB- credit rating, that places Serbia in the elite economic powerhouses as Vietnam, Surinam, Paraguay, Georgia, Gabon, Bangladesh, and Mongolia. Keep up the good work Belgrade, and one day we will even be looking at Albania with envy.

I agree entirely with the Minister that the long-term rating cut is justified

If it wasn't so tragic it would be funny. Dinkic saying that a credit rating cut for Serbia is justified!

When the French were threatened with a rating cut, the busily produced evidence showing that the British were more worthy of a cut. In Serbia we argue to be downgraded!

Hell, why not ask ratings agencies to relegate Serbia further to the bottom of the pile. Good job Dinkic!

"If it wasn't so tragic it would be funny. Dinkic saying that a credit rating cut for Serbia is justified! "
(bganon, 8 August 2012 01:29)

Even more funny is that Dinkic leaves out another reason mentioned for the downgrading, the attack on the independence of the national bank by the new government, openly shown by replacing the chief with a person of their own party.

"...politics and the markets always interact. The very foundation of the market -- the limited liability corporation -- is political. What many take as natural is actually a political contrivance that allows investors to limit their liability. The manner in which liability is limited is a legal issue, not a market issue, and is designed by politicians. The structure of risk in modern society revolves around the corporation, and the corporation is an artifice of politics along with risk. There is nothing natural about a nation's corporate laws, and it is those corporate laws that define the markets.

There are times when politics leave such laws unchanged and times when politics intrude. The last generation has been a unique time in which the prosperity of the markets allowed the legal structure to remain generally unchanged. After 2008, that stability was no longer possible. But active political involvement in the markets is actually the norm, not the exception. Contemporary investors have taken a dramatic exception -- the last generation -- and lacking a historical sense have mistaken it for the norm. This explains the inability of contemporary investors to cope with things that prior generations constantly faced."

Read more: Financial Markets, Politics and the New Reality | Stratfor
http://tinyurl.com/cxhhktz