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

You would be wrong.

The brainless should not be in banking -- Willem Buiter

by Migeru (migeru at eurotrib dot com) on Mon Apr 26th, 2010 at 09:49:44 AM EST
[ Parent ]
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 ]
And aren't banks in the marketing and market-making business?

The brainless should not be in banking -- Willem Buiter
by Migeru (migeru at eurotrib dot com) on Mon Apr 26th, 2010 at 11:20:49 AM EST
[ Parent ]
Exactly.
by ThatBritGuy (thatbritguy (at) googlemail.com) on Mon Apr 26th, 2010 at 11:41:19 AM EST
[ Parent ]
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 ]

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