Monday, August 8, 2011

The Rating Agencies



It seems Moody's and Standard & Poor's are getting a bit of their own medicine. I find it ironic that these two rating agencies are getting some kickback. After all, the banks could not have hidden weapons of mass destruction in their bundles of derivatives had the rating agencies been doing their job.

S&P has one of the worst records for incompetence - they also do not have arms-length relationships with corporations. They give great ratings to private debt and low ratings to public debt. Not to mention sterling ratings for companies that are actually Ponzi schemes (think Maddoff.) In other words - they are putting a nail in the coffin they helped create.

Big sigh.

Is it too early for a drink? No you say - Monday morning is too early for a drink!

How about if I have it with fruit?


14 comments:

Cloudia said...

good post!



Aloha from Waikiki;


Comfort Spiral
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Gemel said...

Get me a glass and I will join you;)

Brian Miller said...

oy i will take one...not only are the incompetents in government but in the rating agencies as well...ugh...

Leah J. Utas said...

Good. I don't understand how the world financial situation works, but we set such great store by it for some reason. I suspect this fragile structure we've built is about to collapse.

DJan said...

I also don't understand the way these things work. Big sigh from here, too. There is something pretty shady going on in government circles, along with the banks and rating agencies...

ellen abbott said...

They're all in the same bed.

T said...

Stripping away the facades, right?

Hilary said...

When the world goes crazy (again and again) it's never too early for one of those yummy looking drinks.

GYPSYWOMAN said...

brava, lady!

and, no, have that glass - it looks divine for any time of day - oh, and i think i'll have one, too! ;)

karena said...

Can I join you for that drink? What a mess...and its aftermath is surely going to make my life more difficult, as I've heard prices for things, as if not high enough, will continue to rise.
As well, the rates will rise...funny I made a typo in this sentence but corrected it...instead of rates...I typed rats. hmmmm

ain't for city gals said...

It's five o'clock somewhere!..not that I ever waited for 5:00..

d page said...

This whole mess is mind boggling. your cocktail looks divine!

susan said...

If these people were just incompetent it would be bad enough. The fact they're complicit in criminal behaviour is disgusting.

That fruity drink looks good enough for me to consider taking up alcohol again.

California Girl said...

whatever that drink is, it looks delish.

S&P, Moody's, etc haven't been credible for YEARS. What kills me is the media still covers their credit ratings and the Street reacts by sell off. the left hand doesn't know wht the right is doing. What else is new?