normthefedup

Credit Rating Reform No Substitute for Investor Vigilance

Ravi, outstanding article and it's about time that they've (Moody's et al) are taken to task. They ruined us. Granted, the investor is the ultimate decision-maker when it comes to investing one's own money. But bear in mind, that most investors, do not have the slightest idea how to read a balance sheet, or p&l statement, or how to analyze an entity's cash flow and the resultant ramifications. They see Fannie Mae rated AAA with "the implicit backing of the Federal Government" and AIG-like entities and companies whose names they recognize also with AAA ratings and they plunk down their money. And lose it. These guys (the ratings agencies) are RESPONSIBLE FOR THE LOSS OF TRILLIONS OF DOLLARS OF AMERICAS WEALTH AND SECURITY. We continue to chastise the Rick Wagoners and the John Thains of the world but do any of us know the names of the executives at Moody's, or S&P? Nah. And they've caused INFINITELY more damage than the aforementioned "villains." Now, they seem to have developed a conscience. Sure.....downgrade Citi and GE at a time when their "honesty" can cause even MORE carnage. As far as I'm concerned, their "rubber stamp" or I should say their PAID FOR rubber stamp on all the garbage investments that brought down the entire world should be evidence enough that these people should be charged with criminal negligence. Thank goodness that the days of mobs and drawn and quarter punishment are over. Or maybe not. Thanks, again. Great, great job.