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Friday, April 2, 2010

Pimco: Britain Losing AAA Credit Rating?

British AAA Credit Rating at Risk

According to bond investor Pacific Investment Management Co (Pimco), Britain is in danger of losing its AAA credit rating within the next 12 months.

This is why the idea the recession is over and everything is on solid footing is a ridiculous assertion from those making it and shouldn't be believed be gold investors.

As a matter of fact, Pimco added the stability of the British financial system is at risk and the public finances of the company could end up in a disaster.

Scott Mather, the head of global portfolio management at Pimco gave a devastating critique of the condition of not only Britain, but the U.S. and European sovereign debt situation as well, saying, "Miracles are needed in the next six months in order to keep economic growth in the developed world."

Moody's (NYSE:MCO) has also stated Britain is considerably closer to losing its AAA rating too.

Oh, I must have forgotten though, we're in a sustainable economic recovery now, so we don't have to be concerned with little things like sovereign debt ratings and threats.

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