OUR LEADERS ARE STILL KIDS
What does it mean to have an AAA? To be perfect? Do you believe it? And can you tell me what is the difference between “extremely strong” and “very strong”? Frankly, our leaders are all still kids, looking for a good note, ignoring the impartiality of those who give it.. Who can still believe the rating agencies, when we know they were one of the primary causes of the subprime mortgage crisis, when some securities, particularly mortgage backed securities and collateralized debt obligations rated highly by the credit ratings agencies, and thus heavily invested in by many organizations and individuals, were rapidly and vastly devalued due to defaults, and fear of defaults, on some of the individual components of those securities, such as home loans and credit card accounts. It’s time to return to the era of the 70s, when the rating agencies were paid for their work, by investors who wanted unbiased information on the creditworthiness of issuers.