Clearly, what has passed as financial market regulation for the rating agencies has been tempered by the need for the very same governments in the bond markets to continue their borrowings.
In other words, there is a conflict of interest in the US and highly indebted European governments being in charge of reforming the credit rating agencies in the first place, given their own borrowing needs, which would be adversely affected by potential rating downgrades should the demands for "truth" in credit ratings become too onerous or even inflexible.
in the time remaining, to help us understand how the man-made system of capitalism will lead to the extinction of our human species, and so many others.
Friday, March 26, 2010
The perfect crime
by Chan Akya from Asia Times Online. The article refers to the rating agencies who have gotten away with "the perfect crime". And he explains why.