Saturday, May 08, 2010

EU Pissed at Rating Agencies; Gold Tops $1,200; Pentagon Lobbies Against Raises for Troops; MUFU Redemptions Blocked In Germany; Everybody for Himself

With all the focus on stock market gyrations this past week, here are a few stories of interest you may have missed.

EU Upset With Moody's, S&P, Threaten to Create Own Rating Agency

EU's Financial Services Chief To Probe Credit Rating Agencies http://www.reuters.com/article/idUSLDE64318620100504

"I think we need to go further to look at the impact of the ratings on the financial system or economic system as a whole...," European Internal Markets Commissioner Michel Barnier told members of the European Parliament.

"If you look at Greece, for example, I was quite surprised by the quite rapid deterioration in rating."

As the European commissioner in charge of financial services regulation, Barnier could propose new rules governing rating agencies. He said on Tuesday it could be possible to start a European agency to rate countries' creditworthiness.

I guess if you do not like the ratings you create a company that will rate you however you want. It seems we tried that with subprime and it did not work out very well.

Gold Futures Top $1,200

Gold Futures Top $1,200, Approach Record on Demand for Haven http://www.bloomberg.com/apps/news?pid= ... kIJgaI5fpA

Gold prices topped $1,200 an ounce, approaching a record, on demand for a haven from financial turmoil.

“The monetary situation is rapidly deteriorating in Europe,â€