Credit rating agencies...indispensable? Absolute nonsense!
Sir although you finally admit to the lead role the credit rating agencies played in causing this crisis you still hold that we can’t live without them and describe their services as “indispensable” “Quo vaditis, raters?” February 23. Absolute nonsense! Of course we can live without them.
There are millions of credit rating agents performing their daily function in what we all know as the market but the problem is that the importance of their diversified judgements were diminished when the regulatory authorities assigned oligopoly powers in the risk information market.
The credit rating agencies have been around for many decades but it was not until the Basel Committee sent out the message that “if they are good enough for us they should be good for you” that they were empowered to do so much damage.
Sir think of what could have happened to a financial world without officially endorsed credit rating agencies and what really happened where trillions of dollars followed their AAA’s into the subprime swamp lands. If you have any sense you must come to the conclusion that what is indispensable is to immediately strip them from their powers.
Do you sincerely believe that we can make the credit ratings to perform so good that nothing of this or even a worse crisis can’t happen. Do you not know that the biggest risks lurch in what is perceived as the safest waters?
For all your experience and reputation you seem quite unwise and perhaps even incapable of learning. Or is it that you have an undisclosed conflict of interest with the credit rating agencies?
There are millions of credit rating agents performing their daily function in what we all know as the market but the problem is that the importance of their diversified judgements were diminished when the regulatory authorities assigned oligopoly powers in the risk information market.
The credit rating agencies have been around for many decades but it was not until the Basel Committee sent out the message that “if they are good enough for us they should be good for you” that they were empowered to do so much damage.
Sir think of what could have happened to a financial world without officially endorsed credit rating agencies and what really happened where trillions of dollars followed their AAA’s into the subprime swamp lands. If you have any sense you must come to the conclusion that what is indispensable is to immediately strip them from their powers.
Do you sincerely believe that we can make the credit ratings to perform so good that nothing of this or even a worse crisis can’t happen. Do you not know that the biggest risks lurch in what is perceived as the safest waters?
For all your experience and reputation you seem quite unwise and perhaps even incapable of learning. Or is it that you have an undisclosed conflict of interest with the credit rating agencies?
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