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Didn't Moody also give AAA ratings to those junk bonds that triggered the housing crisis? I think all the rating agencies did? So why are we listening to them
by Tichy 14y ago
Didn't Moody also give AAA ratings to those junk bonds that triggered the housing crisis? I think all the rating agencies did?
So why are we listening to them again?
- nodata 14y agoWe need a ratings agency for rating agencies.
- johnchristopher 14y agoMy naive answer is: we need to stop tying our national and publicly-funded entities to ratings. Something's wrong when social security is forced to bind itself to external rating agencies that in turn make it a good idea to bet against social security (happening in France, right now).
- hessenwolf 14y agoYes. S&P, Moody's & Fitch seem to have the collective IQ of a kidney bean. Then you have trillions in pension funds shifting overnight because government regulations depend on the output of these rating agencies. You could shift regulation away from these, but maybe you might have your national debt downgraded? Ratings agencies pretty much terrify governments.