Who would dispute that rating agencies are a contradiction in proposition? These 'leaders of financial-market intelligence' supposedly provide investors with credit ratings, risk evaluation and fundamental investment research. Investors are therefore 'better informed' when making investment decisions..
The agencies are ostensibly independent, which is a concern, to say the least. It's seemingly a 'run with the hare & hunt with the hounds' business model. It's also patently illogical to accept that ALL three agencies understated the risks associated with the 'complex' instruments that resulted in the financial crisis.
So if it's garbage in - garbage out, should investors really care whether S&P 'downgrades' the debt outlook for Greece, the US, Liechtenstein or Frankenstein?
The agencies are ostensibly independent, which is a concern, to say the least. It's seemingly a 'run with the hare & hunt with the hounds' business model. It's also patently illogical to accept that ALL three agencies understated the risks associated with the 'complex' instruments that resulted in the financial crisis.
So if it's garbage in - garbage out, should investors really care whether S&P 'downgrades' the debt outlook for Greece, the US, Liechtenstein or Frankenstein?
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