ratsharp

Moody's CEO Wins the Blame-Shifting Prize

i am a visitor from outside US. When people come to my country they are amazaed at how it can run without basic infrastructure , lack of power , clogged road and what role does the government play. Funny enough I get a similar feeling, of complete contrast. A country like US with such abundant resources, educated people and a great government system ( more efficient except probably places singapore etc) ... how does it allow a set of institution called rating agencies to work such inefficiently. They have an important role in the system and thats what they forget. Their consistent cash flows is a function of powers vested by the government. The model of earnings seems similar to govt auctioned power projects in my country which guarantee a certain IRR and at the same time regulate power tariff.... when I say model I mean the purpose of an institution/project...... I really dont care about investors losing money in all housing related stocks like banks insurance cos.etc... but i would seriously expect a government of principle to setup an example this time ( i know that legally moody's is invincible).. that would satisfy the next generation that they are well protected of a mass scale fraud of this nature..