Thursday 1 October 2009
Credit Rating Agency Analysts Covering AIG, Lehman Brothers Never Disciplined
Yes! Let's punish anyone who is ever wrong. That will surely improve advice, won't it?
OK, here's a slob at a ratings agency; call him Joe Blogs. He wasn't fired but, for the next 20 years, when he gives a company an AAA rating, folks in the know will say: "Yeah, and he also gave an AAA to Lehman Brothers 5 days before they went belly up." Unless you can show me how Joe Blogs profited from ruining his reputation and hence his career, you will have a hard time proving criminal intent.
PS: The stock market IS like gambling. As anyone in Vegas will tell you: craps is a method of punishing people who do not know math. For the stock market the phase is: if you ain't in the know, don't spend your dough. The real problem with ratings agencies is gullibility: people thought they were in the know. Turned out not to be the case. Bye dough.
# posted by Had It in Holland Park @ 02:26 
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