Sean Egan on European Sovereign Debt, Ratings

Sean Egan: India GDP to be Less Than Expected

Sean Egan, Founder of Egan-Jones Ratings says that India's growth will be less than expected for the rest of the year.

Sean Egan on CNBC (Jan 3, 2012)

Sean Egan, head of ratings Agency Egan-Jones, talks about Cutting Debt in 2012.
"Just booting a country from the euro doesn't solve the problem. The debt is still there. There is too much debt. There is too little income."

Sean Egan on CNBC

Sean Egan, head of credit rating agency, Egan-Jones, on CNBC explaining his firm's downgrade of Jefferies.


Here a previous interview with Egan that was posted on this blog.

Sean Egan on CNBC

An excellent interview Sean Egan who runs his own ratings agency, Egan Jones.
- Recovery rates for Greek bonds will only be 10% vs. market expectations of 30%.
- The Fed is effectively the lender of last resort for the PIIGS through its Swaps lines and also because it will be the quickest to react and take action.
- Euro debt needs to be guaranteed by a "currency printing agency" but there are always risks of a weimar situation.
- Egan Jones cut the US Govt debt rating over the weekend
- The US Debt to GDP is on par with Portugal, while Canada is at 35% and is a "true" AAA.
- Debt has gone from $8T to $14T over the past few years via 3 wars ($3T) and the financial crisis
- On the debt ceiling: delay is not the same thing as default. The most likley scenario is that the ceiling will be raised, but the more important thing is to get Debt/GDP down.