Welcome And A Good ------ ------ There Are Enjoying Hardcore News! ------ Thank You For Visiting The Hardcore News Web Site! ------ The Most Comprehensive Global News On The Internet! ------ Your , Area's Most Updated News In The , AND THE WORLD! ------ PLEASE NOTE: Hardcore News Is Best If Used With Firefox Or Google Chrome Gecko Type Browser: ------ Hardcore News Web Site Is Best Using A Screen Setting Of 1024 X 768 Or Higher... ------ Your Current IP Address Is From Internet Provider ... This is All We Know About You, Ever Wonder What Kind Of Information Other Web Sites Could Get From Your Computer?... PLEASE BE CAREFUL Who You Share Information With Online! ------ By submitting personal information to any U.S. website, you are consenting that your information is being maintained and or being used here in the United States, is subjected to applicable U.S. laws. Thus... U.S. law may be different than the laws of your home country. ------ Hardcore News IS SAFE! We Never Track Your Moves Or Sell Your Information. ------ The Only Bull-Sh-t On This Site Is The Propaganda! ------ Stay Informed With The Hardcore News ------ All News is AUTO-UPDATED - AUTO-GENERATED Via Keyword Search Terms And Use Of RSS Based News Feeds And Tabbed Headlines On One Page ------ News From Over 40 Reliable News Sources, Even The News Your Not Supposed To Know! ------ PROVIDING UP TO THE MINUTE NEWS With LIVE Video Feeds FROM AROUND THE WORLD! ------ OUR NEWS IS ALWAYS FRESH DIRECTLY FROM THE SOURCE! ------ Again Thank You For Visiting The Hardcore News ------ If You Like This Project And Would Like To See & Help It Grow, Please Consider Donating What Ever You Can By Secure PayPal CLICK HERE ------ Please make a gift to Hardcore News today. Your continued support will ensure that Hardcore News is here reporting THE TRUTH, for a long time to come. It's fast, easy and secure. And Thank You, ------ Only YOU Can Make This Project Worth While! ------ Again Thank You For Visiting The Hardcore News ------
Hardcore Main Stream
Top Stories

Mid East Watch


Tech News


Sports News

Saturday, July 16, 2011

U.S. Downgraded to 'Near Junk' by Weiss

By Philip van Doorn 07/15/11 - 11:03 AM EDT - thestreet.com

Weiss Ratings president Martin D. Weiss

NEW YORK (TheStreet) -- Weiss Ratings on Friday downgraded its rating for United States sovereign debt to a "C-minus," or just one notch above a junk rating.

Weiss had initiated its sovereign debt ratings in April, with an investment-grade rating for the U.S. of "C," saying at that time that low rankings in the categories of debt burden, international stability and economic health, were partially offset by the nation's "ability to borrow in the global marketplace."

The new "C-minus" rating translates roughly to investment-grade ratings of "BBB-" at Standard & Poor's and "Baa3" at Moody's, both of which are one notch above junk status.
The looming debt ceiling deadline in Congress and tortuous negotiations with President Obama, "not to mention the complete lack of any plan to address the nation's obscene debt levels," led to the rating action, according to Weiss Ratings senior financial analyst Gavin Magor.
"Weiss Ratings made it clear that the only reason that the US was rated as high as a 'C,' two notches above junk, was that it had the complete confidence of the markets. This is no longer the case. Even Moody's has warned the US this week that it may consider a downgrade," Magor told TheStreet.
Speaking of the debt ceiling debate, Magor said "the U.S. has debt and deficit problems whether or not the debt ceiling is raised. The excessive borrowing levels must be addressed urgently and until then the US cannot justify a 'AAA' rating [from the Standard & Poor's], or frankly, anything close to that."
Weiss Ratings is an independent ratings service, specializing in rating the financial strength of insurance companies, banks, thrifts and credit unions, in addition to the sovereing debt ratings.
-- Written by Philip van Doorn in Jupiter, Fla.


CNBC Hypes Bogus US Debt Rating

Mark Ames May 4, 2011 - thenation.com

The headline that topped the Drudge Report yesterday morning had frightening news for its millions of readers: yet another credit ratings agency downgraded America’s debt, this time to “C”—at or near “junk” status in the letter-rating scales used by the big three ratings agencies, Standard & Poor’s, Moody’s and Fitch. Clicking on the link takes the reader to a CNBC article headlined, “US Debt Rating Should Be 'C': Independent Agency.”  

The agency turns out to be not one of the big three but an outfit called Weiss Ratings. Scratch the surface, and it turns out that Weiss Ratings is far from "independent," and the rating, itself, is bogus. Weiss Ratings, headed by Martin D. Weiss, an investment advisor who has more than once run afoul of the SEC, downgraded US debt to “C” (which the article says is equivalent to BBB- or “near-junk” status) despite that the fact that the last time the US defaulted on external and domestic debt obligations was 1790. Even the Economist has acknowledged, “Talk of America defaulting on its debt is just that.”
Meanwhile, CNBC failed to disclose the ratings agency has a content-distribution licensing agreement with TheStreet.com, whose chairman and co-founder is CNBC host Jim Cramer.
Cramer’s company owned Weiss Ratings until last year, when TheStreet.com sold it back to Weiss for an undisclosed sum. Since then Weiss and Cramer’s firm TheStreet.com have had a cross-licensing agreement to promote each other’s ratings. CNBC should have done journalistic due diligence. But instead it hyped the rating. At the very least, portraying a ratings agency as “independent” on CNBC when a top CNBC on-air personality has a business interest in that relationship is misleading. 
Jim Cramer has a history of making controversial investment calls. The host of the popular CNBC show “Mad Money” has come under fire from the New York Times and Jon Stewart’s Daily Show for repeatedly misleading his viewers. In a videotaped interview in 2006, Cramer boasted about how to manipulate stock prices by spreading false rumors.
Weiss also has a history of misleading investors. In 2006, the same year that Cramer’s company bought the Weiss Report, the SEC accused Weiss of misleading investors and violating securities laws, and slapped the investment advisor and his company with a combined $2.1 million fine. Among other things, the SEC charged Weiss with making false claims that readers who followed his advice earned up to 400% returns: “In fact, during the relevant time period, many subscribers who followed each Weiss Research trading recommendation – as Weiss Research encouraged its subscribers to do – experienced overall returns that were substantially lower than Weiss Research’s profit examples and most actually lost money.”
This isn’t the first time Weiss has been charged by the SEC with violating securities laws: In 1972, the SEC suspended Weiss for four months, charging that Weiss’s investment publication “had been used to promote the sale of a fraudulent unregistered investment contract.”
Although Cramer hasn’t been charged or fined by the SEC, he is notorious for repeatedly misleading his viewers with some of the most disastrous investment advice any television stock picker has given.
On March 11, 2008, Cramer told viewers not to sell Bear Stears stock:  “Bear Stearns is not in trouble. I mean, if anything, they're more likely to be taken over. Don't move your money from Bear.” Days later, Bear Stearns collapsed and was taken over by JPMorgan, all but wiping out shareholders.
On September 15, 2008, Cramer recommended viewers buy Wachovia stock, inviting the bank’s CEO, Bob Steel, on his “Mad Money” show to convince viewers of the bank’s soundness. Two weeks later, after Wachovia collapsed, Cramer apologized to viewers for the recommendation, blaming Steele for taking advantage of Cramer’s trust: “I let my judgment of Steel cloud my thinking about Wachovia. Is he to blame? Did he take advantage of me? Perhaps yes.”
A year later, even after getting shamed on the Daily Show, Cramer was at it again, recommending viewers buy CIT stock just weeks before it collapsed in bankruptcy.
Two weeks ago, William Greider called out Standard & Poor’s “credit rating hoax” when the “unindicted co-conspirator in the Wall Street deceitfulness that brought the nation to financial ruin” issued a downgrade on US debt.
Now the hoax is becoming even more brazen. It’s time for government to step in and finally do its job: protecting the public from misleading financial advice, rather than protecting the people who brought the country to financial ruin. 

CORRECT: Weiss Ratings Says US Credit Rating Already Near Junk

("Weiss Ratings Says U.S. Credit Rating Is Already Junk," at 1240 EDT, misstated Weiss's ranking on U.S. government debt as junk, in the first and fourth paragraphs. The correct version follows:)
NEW YORK (Dow Jones)--Weiss Ratings, a small, independent credit-ratings agency, has carried the debate over the U.S. government's triple-A credit rating several steps farther than the big Wall Street ratings agencies--consigning the world's largest economy to near junk-bond status on Thursday.
Weiss is a little-known provider of opinions on the health of banking and financial institutions. Still, the firm touts its having predicted the failure of major banks, including ...

Hardcore News Is Brought To You By...

Facebook Social & Comments

Hardcore Links