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  • Tack 
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  Tack 

  

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  Specialize in investment in and trading of "deep-value" high-yield securities, including debt, preferred shares, common shares, and put/call options.

  
  Always the American solution to everything: allow (i.e., encourage)somebody to sue somebody. This will have adverse effects, of course.
  
  For example, in the aftermath of the housing crisis, Congress has rushed new legislation into effect that forces all appraisals to be "independent" and, much more importantly, allows appraisers to be sued directly, whereas previously they were protected by lenders. This all sounds so noble, but, what it does, of course, is to ensure that all appraisers lowball appraisals, in order to protect themselves. The net result is that homes are now routinely appraised below sales-contract prices, thereby crippling ability to get financing and killing numerous real estate sales. Just what we need (not)!
  
  Similarly, allowing raters to be sued will merely result in them automatically lowering ratings to ensure that nobody can claim they "overrated" a company of bond. This will have the effect of raising yields industry wide.
  
  As usual, government "solutions" are much worse than the disease.

  2009 Oct 28 10:26 AM Reply
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  • Machiavelli999 
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  Machiavelli999 

  

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  Machiavelli999 has yet to provide a bio.

  
  Umm..not really.
  
  At worst, some people can't get financing for their homes.
  
  In return, we avoid horrible financial crises when all of those AAA rate mortgages go bust.

  2009 Oct 28 02:34 PM Reply