GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Wilbur Ross and Mohamed El-Erian Talk About S&P's Cut of U.S. Credit Outlook

April 20, 2011
Wilbur Ross, chief executive officer of WL Ross & Co., talks about the decision by Standard & Poor's to cut the outlook for the AAA credit rating of the U.S. to "negative.”

Ross called S&P’s move “alarmist” and not soundly logical.

Ross is of the opinion that any claim that U.S. could default on its debt cannot be taken seriously. He noticed that the S&P raised the credit rating of most states in the U.S. not too long ago.

Ross claimed that if a downgrade of US’s credit rating take hold, then none of the companies in the company deserves an “AAA” rating because in theory, the country can continue to raise tax on the companies to improve its own rating.



(Source: Bloomberg)

Mohamed El-Erian, chief executive officer at Pacific Investment Management Co., talks about Standard & Poor's change in its outlook for the AAA credit rating of the U.S. to "negative" and the prospects for U.S. debt reduction.

About the author:

guruek
Ockham Research is an independent equity research provider based in Atlanta, Georgia. Security analysis at Ockham Research is based upon the principle known as Ockham's Razor, named for the 14th-century Franciscan friar, William of Ockham. We utilize this straightforward approach to value over 5500 securities, with key emphasis given to the study of individual securities' price-to-sales, price-to-cash earnings and other historical valuation ranges. Please visit www.ockhamresearch.com for more information.

Visit guruek's Website


Rating: 3.8/5 (4 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK