Fitch warns BoG against printing money to finance deficit

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Kk 9 years ago

The government of Ghana must take drastic action or else, Ghana will be bankrupt sooner rather than later.

The government of Ghana must take drastic action or else, Ghana will be bankrupt sooner rather than later.
nii 9 years ago

when america and western countries print money to help their economy , do u say anything??? Please leave US alone U monguls.

when america and western countries print money to help their economy , do u say anything??? Please leave US alone U monguls.
ROGUE LAWYER 9 years ago

THEY CAN RATE US Z- WE DONT CARE AS LONG AS THE PEOPLE IN THE COUNTRY CAN LIVE A HUMAN AND BETTER LIFE.

THEY CAN RATE US Z- WE DONT CARE AS LONG AS THE PEOPLE IN THE COUNTRY CAN LIVE A HUMAN AND BETTER LIFE.
Nana Adu 9 years ago

Concentrate on even the UK government, where you're based. Don't fitch sees the technical difficulties and struggles of the UK bank power and government. But they FITCH lied before...until now we know UK can enter back to rec ...
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Concentrate on even the UK government, where you're based. Don't fitch sees the technical difficulties and struggles of the UK bank power and government. But they FITCH lied before...until now we know UK can enter back to recession.

They have been paid by NPP to do a dirty job to Mahama-led government. It's a shame Bawumia,Nana, Alan(as for Paul Afoko--he's a mess digger)
wofa 9 years ago

We were all witnesses when the whole cedis was changed into Ghana cedis in 2007. What happened then if you had the country at heart?.

We were all witnesses when the whole cedis was changed into Ghana cedis in 2007. What happened then if you had the country at heart?.
tr 9 years ago

This is the root cause,we are now feeling the real impacts of this and other acts by the NPP.Ask the ECONOMISTS, when an economic decision is taken today, it takes 5 to 10yrs to feel the real impacts.

This is the root cause,we are now feeling the real impacts of this and other acts by the NPP.Ask the ECONOMISTS, when an economic decision is taken today, it takes 5 to 10yrs to feel the real impacts.
Kwas 9 years ago

Yes get lost Fitch Usa how much printing.
Plus are you all crooks taking bribes from banks and institutions ??????

In the years leading up to the housing bust, Moody's, S&P and Fitch passed out AAA ratings like candy bars ...
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Yes get lost Fitch Usa how much printing.
Plus are you all crooks taking bribes from banks and institutions ??????

In the years leading up to the housing bust, Moody's, S&P and Fitch passed out AAA ratings like candy bars at Halloween. In mid-2007 and early 2008, with the real estate market in free-fall and mortgage delinquencies soaring, they suddenly started downgrading scads of formerly top-rated securities. In January of '08, for instance, S&P lowered ratings on more than 6,300 and 1,900 CDOs -- in a single day. Then, the deluge. The bottom fell out of the secondary market for subprime loans, and the rest is history.

Why did this happen? An 18-month congressional inquiry into the debacle has identified a host of reasons. Here are five of the leading causes, as summarized by the Senate subcommittee on investigations, the panel hosting today's hearing:
Competitive Pressures. Intense competition, including the drive for market share and need to accommodate investment bankers bringing in business, affected the credit ratings the agencies issued.
Failure to Reevaluate. By 2006, Moody's and S&P's knew their ratings of residential mortgage backed securities and CDOs were inaccurate and revised their rating models to produce more accurate ratings, but then failed to use the revised model to reevaluate existing RMBS and CDO securities. That delayed thousands of rating downgrades and allowing those securities to carry inflated ratings that could mislead investors.
Failure to factor in fraud, laxity or the housing bubble. From 2004 to 2007, Moody's and S&P's knew of increased credit risks due to mortgage fraud, lax underwriting standards and unsustainable housing price appreciation, but failed adequately to incorporate those factors into their credit rating models.
Inadequate resources. Despite record profits from 2004 to 2007, Moody's and S&P failed to assign sufficient resources to adequately rate new products and test the accuracy of existing ratings.
Failed ratings. Moody's and S&P each rated more than 10,000 RMBS securities from 2006 to 2007, downgraded a substantial number within a year, and, by 2010, had downgraded many AAA ratings to junk status.
Legal pressure for AAA ratings. Legal requirements that some regulated entities, such as banks, broker-dealers, insurance companies, pension funds and others, hold assets with AAA or investment grade credit ratings, created pressure on credit rating agencies to issue inflated ratings

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Rogue Ray Ram Liar 9 years ago

Wash my back for me to do same to you

Wash my back for me to do same to you
Kofi Sammy 9 years ago

I have always believed that Dick Fuld /Leyman was unfairly treated. Dick probably muast have stepped on some toes or better still had no friends. On the other hand Jamie Dimon /JP Morgan seemed to have had friends and got awa ...
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I have always believed that Dick Fuld /Leyman was unfairly treated. Dick probably muast have stepped on some toes or better still had no friends. On the other hand Jamie Dimon /JP Morgan seemed to have had friends and got away....til now
Investments Banks are the biggest threats to the global economy I dare say
Son of The Soil 9 years ago

Although the usa did the same does not mean its right. Lets look at the scenario case by case. The usa inflation rate has never exceeded 3% since 2008 because they sincerely know when to taper down on this printing of money.M ...
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Although the usa did the same does not mean its right. Lets look at the scenario case by case. The usa inflation rate has never exceeded 3% since 2008 because they sincerely know when to taper down on this printing of money.Moreover, this printing of money was used strategically to turn its economy around by bailing out banks and industry (manufacturing). Lets look at Ghana's situation, what is this unnecessary printing of money being used for. Where we have contractors who have not been paid their due after execution of projects or even district who have not received common fund from the finance ministry because the state coffers are dry. Actually what is all this money being used for? Secondly, in the past we have experienced an inflation rate of over 40%, and the people at the current helm of our financial affairs don't look like they would be able to manage the situation. Am sorry but the government has really run out of ideas on how to generate funds. For example l don't think we need new taxes but all we need is an efficient collection of taxes and also utilities (water, electricity payments). The tax system really needs to be tightened up, both corporate and personal taxes. That's my take. God bless Ghana!!!
keiby 9 years ago

Son of the soil, I appreciate your concerns but look at this situation also. If you print money who takes the interest; nobody, but if you borrow money there is a 25% interest to pay at current rate. You said contractors cann ...
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Son of the soil, I appreciate your concerns but look at this situation also. If you print money who takes the interest; nobody, but if you borrow money there is a 25% interest to pay at current rate. You said contractors cannot be paid but you did not mention the effect this is having on the economy. I believe that once we get to pay our contractors alone and may be part of the DACF the economy will start moving again.
EZEKIEL 9 years ago

The USA can PRINT BILLIONS EVERY MONTH because the "world currency" is the Dollar and ALL(Almost) transactions are paid in US$ !! The DAY LESS COUNTRIES will need the $ for their trade,the USA will ALSO be in trouble!!
Power ...
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The USA can PRINT BILLIONS EVERY MONTH because the "world currency" is the Dollar and ALL(Almost) transactions are paid in US$ !! The DAY LESS COUNTRIES will need the $ for their trade,the USA will ALSO be in trouble!!
Powerful nations are SLOWLY getting the message......to get AWAY from the $$
Antiochus - London 9 years ago

Mahama led NDC govt is like a drowning man clutching at a straw. Better Ghana Agenda indeed.

Mahama led NDC govt is like a drowning man clutching at a straw. Better Ghana Agenda indeed.
ROGUE LAWYER 9 years ago

FICHT SHOULD LEAVE GHANA ALONE TO DO WHAT THEY WANT-
they should tell me which developed country has not printed money before to bail her economy out .
Money printing is the secret of the so called developed countrie ...
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FICHT SHOULD LEAVE GHANA ALONE TO DO WHAT THEY WANT-
they should tell me which developed country has not printed money before to bail her economy out .
Money printing is the secret of the so called developed countries. if ghana want to go by that way we must ecourage them to put strict mechannisms to control price of goods in the country and make sure the aims of the surgery had been professionaly achieved.
by making sure there are deciplines in the structures
NANA AKUFO ADDO 9 years ago

ALL THESE SPY AGENCIES, FITCH, IMF, WORLD BANK, ETC MASQUERADING AS RATING AND MONETARY AGENCIES DON'T WANT TO SEE AFRICAN COUNTRIES PROSPER. AND SO THEY WILL DO EVERYTHING HUMANLY POSSIBLE TO MAKE US LOOK BAD IN ORDER TO REM ...
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ALL THESE SPY AGENCIES, FITCH, IMF, WORLD BANK, ETC MASQUERADING AS RATING AND MONETARY AGENCIES DON'T WANT TO SEE AFRICAN COUNTRIES PROSPER. AND SO THEY WILL DO EVERYTHING HUMANLY POSSIBLE TO MAKE US LOOK BAD IN ORDER TO REMAIN QUOTE "THIRD WORLD COUNTRIES" DON'T PAY ATTENTION TO THEM. LET'S CONTINUE WITH OUR "HOMEGROWN POLICIES" TO FIX OUR ECONOMIES. RECENT EVENTS IN GHANA AND SOUTH AFRICA REGARDING THEIR ECONOMIES HAVE THE INVISIBLE HANDS THESE CRIMINAL SHADOWY AGENCIES ALL OVER THEM.
Jason 9 years ago

Eventhough I am against printing money I think these "western" agencies turn blind eyes if it involves western nations doing the same thing. USA did similar and you have countless European countries doing the same...

Eventhough I am against printing money I think these "western" agencies turn blind eyes if it involves western nations doing the same thing. USA did similar and you have countless European countries doing the same...
KOO 9 years ago

It is quite sad to read some of these comments.People can notice the hardships around but simply do not understand how they came about.What is happening today is exactly the replica of what happened under Jerry Rawlings when ...
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It is quite sad to read some of these comments.People can notice the hardships around but simply do not understand how they came about.What is happening today is exactly the replica of what happened under Jerry Rawlings when money was printed to cater for domestic deficit.The result was ran away inflation with large quantities of money that could only be transported in Ghana must go bags to conduct business.Fitch is only advising but if we fail to heed it will worsen the situation.
DADDY L. 9 years ago

SACK THE BoG governor and finance minister.

These two have wrecked GHANA'S ECONOMY, AND CNTINUES TO DO SO.

EVEN A FOOL WITH BASIC JSS KNOWLEDGE IN ECONOMICS KNOWS THEY ARE USELESS.

It's only in Ghana that such people ...
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SACK THE BoG governor and finance minister.

These two have wrecked GHANA'S ECONOMY, AND CNTINUES TO DO SO.

EVEN A FOOL WITH BASIC JSS KNOWLEDGE IN ECONOMICS KNOWS THEY ARE USELESS.

It's only in Ghana that such people have been allowed to hold their posts despite their abysmal performance.
kofious 9 years ago

In the face of the frightening economic crisis, 500 football supporters are being sponsored for Brazil 2014. This is a rational economic priority indeed.

In the face of the frightening economic crisis, 500 football supporters are being sponsored for Brazil 2014. This is a rational economic priority indeed.

Fitch warns BoG against printing money to finance deficit

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