Rating Agencies Considered Harmful | 91 comments (91 topical, editorial, 0 hidden)

Re: Rating Agencies Considered Harmful (4.00 / 3)

You might think banks wouldn't outsource their core business.

You would be wrong.

The brainless should not be in banking -- Willem Buiter

by Carrie (migeru at eurotrib dot com) on Mon Apr 26th, 2010 at 09:49:44 AM EST
[ Parent ]

Re: Rating Agencies Considered Harmful (4.00 / 2)

That probably depends on how you define core business.

If you believe that ratings agencies exist to give ratings that are as objective as possible, in theory anyone competent can do that.

Isn't it obvious though that ratings agencies are in the marketing and market-making business, and that ratings are largely expedient and political - if not knowingly misleading and fraudulent?

by ThatBritGuy (thatbritguy (at) googlemail.com) on Mon Apr 26th, 2010 at 11:11:59 AM EST
[ Parent ]

Re: Rating Agencies Considered Harmful (none / 0)

And aren't banks in the marketing and market-making business?

The brainless should not be in banking -- Willem Buiter

by Carrie (migeru at eurotrib dot com) on Mon Apr 26th, 2010 at 11:20:49 AM EST
[ Parent ]

Re: Rating Agencies Considered Harmful (none / 0)

Exactly.

by ThatBritGuy (thatbritguy (at) googlemail.com) on Mon Apr 26th, 2010 at 11:41:19 AM EST
[ Parent ]

Re: Rating Agencies Considered Harmful (none / 1)

To expand - I mean that banks don't do the job we think they do and they pretend to do.

They like to present themselves as final authorities on financial and fiscal events, but they're more like joyriding teenagers in fake beards pretending to be grown-up.

What's endlessly bizarre is that everyone seems to be believe them.

by ThatBritGuy (thatbritguy (at) googlemail.com) on Mon Apr 26th, 2010 at 02:53:58 PM EST
[ Parent ]

Rating Agencies Considered Harmful | 91 comments (91 topical, 0 editorial, 0 hidden)

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