God damn.
Suddenly, out of the woodwork, we've got credit rating companies (like S&P and Moodies) telling us what's right and what's wrong.
Have I lost the plot or are these credit rating companies PART OF THE BLOODY SYSTEM THAT'S IN MELT DOWN???
Jesus. Seriously.
The last thing I want to hear is some capitalist agency telling me I better privatise everything, because the banks and the government (WHO I DID NOT VOTE FOR) screwed up and that I have to pay for their bloody mistakes.
LINE THEM UP AND SHOOT THEM.
Good morning.
Yeah. Everything's fine.
I don't get the criticism. We criticized credit agencies, rightfully so, for not letting us know about bad credit practice.
Now that they're actually doing their job and trying to report credit weakness, we have an issue?
I'm sorry, but if you really think that all this government credit is AAA then you just haven't been reading the news.
I'm perfectly fine with credit agencies downgrading government credit. That's what they're there for.
If you think that their opinions on what makes good financial practice are wrong, and you're upset about it, I can't help but wonder if you're confused about the polticial process. These guys have no power other than to give their advice on what they think is good fiscal policy. If you don't agree, then don't take their advice. If politicians don't agree, you can pretty much bet they won't either.
Who can trust the credit rating agencies after they totally and utterly failed to spot the bank meltdown? What is their agenda, who owns them? There's too much speculation and money being made by hedge funds and Private equity companies who don't pay their fair share of taxes? Wealth creation is essential but it needs to be more transparent and fair.
Originally posted by captain blackThe incompetence is not nearly as troubling as the corruption.
Who can trust the credit rating agencies after they totally and utterly failed to spot the bank meltdown? What is their agenda, who owns them? There's too much speculation and money being made by hedge funds and Private equity companies who don't pay their fair share of taxes? Wealth creation is essential but it needs to be more transparent and fair.
http://www.businessinsider.com/moodys-analyst-conflicts-corruption-and-greed-2011-8
Originally posted by shavixmirThe rating does not destroy anything it merely quantifies the risk of default (or at least the rating agency's belief of the risk of default). If there is a high risk of default, there will be a higher premium for borrowing. If there is less of a risk, there will be a lower premium.
and destroys economies?
The blame (if any) should be the entity that borrows excessively (governments) not the entity who tells them that they are being financially irresponsible (regulator) or the person who want more compensation for additional risk of default (lenders).
Standard and Poor - I think they would have more credibibility if they were called Outstanding and Great.
Moodies - should be called Calmness.
But ultimately they are right to downgrade the credit worthiness of the EU - after all no-one really has a clue how Europe can pay its debts back - without incurring huge inflation. Therefore until a credible solution is found a downgrade seems eminently sensible.
What I don't understand is when they state the bleeding obvious why the media go into hyperbole.