The collapse in the price of oil is unmaking deflationary pressures and could cause a wave of defaults as the global economy and cause an environment where people are going to be less willing to lend money not just in the energy sector but across the economic spectrum. Not only are there growing supply side worries it is coupled with signs of weakening demand.
Why is the Justice Department suing Standard & Poor's for mis-rating structured credit securities before the financial crisis, and not suing Moody's, which gave a lot of the same products the same ratings? I have a theory, but Standard & Poor's has another, and theirs is a corker:
Gold prices retreated, as the U.S. Fed did not indicate an imminent QE3 in the FOMC minutes released yesterday, although some members favored further policy easing if the Fed's dual objectives cannot be achieved.
Ratings agency Moody's downgraded 15 of the world's biggest banks last Thursday, lowering credit ratings by one to three notches to reflect the risk of losses they face from volatile capital markets activities