Wednesday, February 9, 2011

Government Credit Score is 650

Yes. And I caught the Loch Ness Monster on six pound test and water skiied behind her for an hour.

Perhaps shockingly, most of these estimators come up with a score of around 650 (with a range of 625 to 720). That is basically in the middle of the range, and consistent with the recent rating on U.S. debt of A+ by China's Dagong Global, the only non-U.S. credit rating agency that seems to draw much interest or credibility. By comparison, countries like Norway, Switzerland and Singapore score an AAA from Dagong, and the United States is largely on par with Japan, France and Britain in Dagong's scoring.

Here's the whole link:

Here's the deal killer. We call it debt to income ratio. Show me a debt to income ratio beyond 70% (I used to write loans in Vegas) and I'll call you dead money. We just can't whip out a batch of new dough every time we are running low.

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