Madam, – Why does the international financial community give any credence to Standard and Poor’s downgrading of our credit rating? Three years ago, at the height of the boom, Standard and Poor’s gave this country a triple A rating. This was when: 1. Banks were overextending themselves by giving huge loans to developers secured on land bought at massively inflated prices. 2. Banks were giving 100 per cent mortgages to home buyers. 3. The Government was basing current expenditure on tax receipts from an ever-expanding property bubble.
Our credit rating should have been downgraded at that time by Standard and Poor’s. We can have little faith in their ratings. They should be ignored now.
Much better to have listened to Lee and McWilliams. – Yours, etc,