Don Fishback

Are Credit Rating Agencies Good for Anything?

Tom, If you think I haven't been paying attention, then you haven't been reading my blog. I have an entire category devoted to the ratings agencies. To me, the ratings agencies were the grease that allowed the machine to function. None of this mess would have been able to proceed as far as it did without those AAA ratings.


On Dec 21 03:29 PM Tom Armistead wrote:

> If you think the latest from S&P is the most worthless drivel
> you've ever read, then you haven't been following the rating agencies
> too closely.
>
> Try reading Moody's Nov 2008 "The Changing Business of Financial
> Guaranty Insurance." This document covers its subject matter accurately
> enough, with one glaring omission:
>
> Moody's is absolutely unwilling to acknowledge in any way, shape,
> form or manner its central role in creating the credit crisis which
> has destroyed the whole industry, to the point that only the US
> Government has any credibility and that comes from the power of the
> printing press.
>
> Moody's has absolutely no insight into the cause of the problem,
> which was their greed and folly in bestowing triple A ratings on
> toxic waste.