America’s Credit Rating Downgraded—And Why It’s Another Headwind For Housing

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  • Brad TaylorPro Member
    Chicago, IL · Member since 2018 · 71 posts · 33 votes
    1y

    Let's also remember that Moody's is full of s***. This is the same agency that rated thousands of MBS in the early-mid 2000s that were full of junk, toxic mortgages. It's aggravating that a company like this that couldn't see right through the garbage of subprime would have any influence at all in the larger US credit ratings.

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    • Matt MyrePro Member
      Investor · Raleigh, NC · Member since 2022 · 12 posts · 29 votes
      1y

      Fair point. Regardless, the other "raters" have had our credit downgraded for a long time now, so they're just catching up, but maybe there's something to be said about that too.

      BiggerPockets
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  • Chris Crubaugh
    Member since 2021 · 8 posts · 1 vote
    1y

    Great article, love to hear how it all ties to real estate.

    Couldn't help but notice, "yields are lower when the economy is doing well because investors feel like they can make more money in other assets like stocks. When times are bad, investors flock to T-bills to protect their money, driving yields up. It’s a supply-and-demand equation."
    Don't yields go down when investors buy (high demand) and prices go up? And yields go up + prices go down when demand is low?

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