Dagong Global Credit Rating Co., Ltd, unlike Moody’s, S&P and Fitch credit rating agencies, is not traded on American stock exchanges. Dagong claims that the above companies have a an unintentional western bias and therefore their company and country ratings are skewed. For example, the S&P did not downgrad United States credit worthiness until August, 2011. Dagong downgraded American debt twice in 2010 to AA and then to A+. Then again in August, 2011 Dagong downgraded again to A.
The American Debt situation did not arise suddenly. It has been building for over 20 years, but no one wanted to deal with it. George Soros claimed that it has been building for over 50 years, beginning with faulty economic policies which artificially inflated the housing market starting in the 1960’s.
At any rate, certainly after the economic crisis of 2008, the United States economy was weak. In 2010, Dagong Global had the ability to see it and had the nerve to downgrade America’s credit rating. Perhaps, because they were less involved in the American Economic System they had a more clear perspective. Whatever the reason, those who paid attention to Dagong’s downgrade had the information to make more informed investment decisions. I would advise that we search for alternative opinions on the world economic situation in order to broaden our perspectives and make better economic decisions.
The managers at Dagong Global include Zhou Dugao, Jin Yongshou, Ai Renzhi, Liu Ying, Zhang Zhijian and Guan Jianzhong.
Disclaimer: The information provided here is insufficient to formulate investment decisions. All investments should be made only after completing a thorough analysis of the investment.
Sorry, comments are closed for this post.