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5 months ago ::
Dec 26, 2011 - 6:46PM
#22
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This thread was moved from the Hot Topics Zone
Conservative, Libertarian, Life member of the NRA and VFW
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6 months ago ::
Dec 18, 2011 - 4:48AM
#21
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Why trust your investments to this rating agencies anyway. Even they have an high rating I will not trust my money and big investments on them.
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6 months ago ::
Dec 10, 2011 - 10:59AM
#20
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When we are all using fiat money, the market is the only place that its value can be determined.
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6 months ago ::
Dec 10, 2011 - 3:24AM
#19
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... only to see them fall apart as markets judged they were inadequate or irrelevant ...
This is the sentence that shows you need to learn more about the role of rating agencies, Jane. It is not "markets that decide" here at all, unfortunetely! It would be great if markets were in a position to judge. As it stands, the huge investors rely more and more on intransparent opinions sold by Standard & Poor's, Moody's, & Fitch... who don't know better than many others, but are selectively relied upon nonetheless.
“The problem with quotes on the Internet is
that it is hard to verify their authenticity”
- Abraham Lincoln.
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6 months ago ::
Dec 09, 2011 - 11:20PM
#18
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I rather like this editorial in the NYT online about the entire situation with Europe : www.nytimes.com/2011/12/10/opinion/europes-latest-try.html?_r=1 "We’re losing count of how many European Union summit meetings have ended with “historic” agreements to contain the euro-zone debt crisis only to see them fall apart as markets judged they were inadequate or irrelevant to the problem of making good on old debts and generating enough growth to pay off future obligations."
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6 months ago ::
Dec 09, 2011 - 4:38PM
#17
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Do you think Britons should not cooperate with other Europeans so much?
I'd rather our current government didn't get the chance to screw up the economy of the entire EU. While I appreciate that they wouldn't have control of the entire EU's economy, I have a horrible suspician that their mean-spirited stupidity would be contagious.
He who oppresses the poor shows contempt for their Maker, but whoever is kind to the needy honors God. ~ Proverbs 14:31Fiat justitia ruat caelum 
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6 months ago ::
Dec 09, 2011 - 4:01PM
#16
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Rating systems are a small part of the drama over the EURO, it seems to me. There is much more going on.
Sure. But the rating business is certainly one of the elephants in that room.
I'm glad the British have maintined their own currency.
Why that?
Do you think Britons should not cooperate with other Europeans so much?
“The problem with quotes on the Internet is
that it is hard to verify their authenticity”
- Abraham Lincoln.
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6 months ago ::
Dec 09, 2011 - 1:53PM
#15
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In the US we have fifty states with all their constinutants involved. Outcomes are not always the best, but we also have one federal government and not a parliamentary system. Does this always work? Certainly not, but I don't know one American who would ever cede monetary policy to anyone else.
>>>>>> This is a populist line and you are right about Americans (Actually this would apply to most nations of the world!). However US policies are interlinked and China, Europe and some other nations do have influence over monetary policies of the US. As US has influence over other nations. However the important part of the discussion is to bring these agnecies under one "Fair" standard or procedure. Where all nations will be treated/rated honestly. As Chari pointed out some of these agencies had interest in some businesses and gave higher rating to near "Junk" industries. These ratings are taking a toll on many Euro nations. So Europeans are asking about how accurate they are. Which is a fair question to ask. As long these agentcies can answer to that important question, I think most people will accept it. Since there are some genuine concerns about how these agencies operate. If they have conflicting interests when rating a country or industry etc. We have to wait and see how this works out..
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6 months ago ::
Dec 08, 2011 - 9:31PM
#14
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Rating systems are a small part of the drama over the EURO, it seems to me. There is much more going on. Read this on the BBC online tonight : In recent days, smaller EU nations have complained they are being forced to follow the agenda of Germany and France, with very little room for discussion, says the BBC's Chris Morris in Brussels. An advisory committee to the Finnish parliament has warned that the Franco-German plan may be unconstitutional because it replaces the majority veto on the fund for future bailouts with majority voting. Chari We do read the international press. English reaction interests me because the US and Britain are allies in so many stances. I'm glad the British have maintined their own currency. I'm a moderate slightly left of center and too much austerity is not up my alley--I'm a keynesian with a small "k". In the US I think keynesianism with a small "k" works. (Of course in the US austerity is rarely invoked when it includes the military-industrial complex. Eisenhower was right.) In the US we have fifty states with all their constinutants involved. Outcomes are not always the best, but we also have one federal government and not a parliamentary system. Does this always work? Certainly not, but I don't know one American who would ever cede monetary policy to anyone else. As many American do, I have a soft spot for France, too and Italy. My background is Irish/English but many of my friends are multi-generational Italian/American. Ireland has suffered greatly at the hands of the Brits and now is facing great hardships : in some ways Ireland has given its best to the US. Awhile back a fave priest of mine, a sociologist, Andrew Greeley averred with statistics that Irish-Americans are the most highly educated and highest achieving in our population :rings true for my family. So, it goes.
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6 months ago ::
Dec 08, 2011 - 12:58PM
#13
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The ratings agencies are so untrustworthy that this administration has had to run two stress tests, one just recently, of some of the major banks to make sure some are not ready to default, and we have to remember that Moodys and S & P were giving AAA ratings to junk that the investors well knew would fail.
However, whether we like it or not, these agencies are likely here to stay largely because there's a distrust of the government doing it alone, and for some good reason I might add. To a large degree, it's still very much a "buyer beware" system that we have, and we're simply not going to get rid of that in its entirety.
Good points!
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