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everybody can use CDS data right now.

Even if that were true, which as Mig points out below it isn't, capital market prices are completely worthless for estimating things about the real economy.

And rating agencies have the right to publish their assesments.

But they won't, because that would demonstrate to all the world that their ratings are advertising campaigns rather than serious analysis.

However your defense of their irrational grading policy sounds unconvincing.

I'm not defending it. I'm saying that bad as the ratings agencies undoubtedly are, the capital markets are even worse. So you can't use data from the capital markets to indict the rating agencies.

What you can use to indict the rating agencies is the fact that they've been wrong on any issue of any real importance that they have commented on. That is an indictment that matters.

The failure of their assessments to correlate with the whims of the capital markets is worth only a shrug, since the whims of the capital markets say nothing at all about the real economics of the activity they are supposed to reflect.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Tue Apr 27th, 2010 at 10:03:04 AM EST
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