Chicken or egg?

Which is more important – the country’s credit rating or managing our way out of the recession?

It’s a bit like the question of whether the chicken or egg came first. 

Getting a credit rating downgrade will make it harder to manage our way out of the recession and not managing our way out of the recession will result in a credit rating downgrade.

To mangle the metaphor – if you kill the chicken you don’t get eggs and if you scramble the eggs you don’t get chickens.

One Response to Chicken or egg?

  1. Pique Oil says:

    The credit rating agencies are as useless as the proverbial on a bull. Their failure to correctly rate the risk fro the sub prime debacle, AIG GM etc is bad enough, however they are not downgrading the USA dollar to its true rating. To do so would cut their income so they pretend all is well.
    Having got that out of the way, we in Godzone have a choice. We really are so small that we should just do whatever we need to look after ourselves and let the credit rating fall where it may. Johnny and his band of merry folk have the job of running NZ inc. for the benefit of its shareholders. We are the shareholders, not the banks, the credit rating agencies etc.


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