4 ms·
As usual, rating agencies successfully shut the barn door after the horse has bolted.
by advisedwang 4y ago
As usual, rating agencies successfully shut the barn door after the horse has bolted.
- BoorishBears 4y ago*after they kicked the horse out of the barn
- stametseater 4y agoThis recent trend of blaming the fires on the people who sounded alarms is really bizarre. The "bank runs" were caused by the banks being bad at their jobs, not by those who noticed it and said something. If Moody's has a share of the blame, it's because they said too little too late, not too much.
- BoorishBears 4y agoCritical thinking isn't a recent trend. With some critical thinking one can both blame the banks for misbehaving, but also see the irony in a rating agency's early warning of an impending downgrade being a partial catalyst in something a lot worse than a simple downgrade. An overly simplistic world view means dealing in absolutes that are generally not compatible with the concept of fractional banking (or really any complex system).
- esalman 4y agoMoody's threatened to downgrade SVB last week, before the bank scrambled to sell stocks. Their plan simply backfired.
- Red_Leaves_Flyy 4y agoWhy threaten when the period was already in the pudding? Are their decision makers drunk, incompetent, or bought and paid for? Missing this should be grounds to shut down or nationalize their ratings. The fact that this is outside the overton window is telling in and of itself.
- esalman 4y agoYeah probably Moody's didn't take SVB's exposure to Peter Thiel-funded startups into account.