Another Day, Another War

I don’t profess to know more than the real basics about this topic but why are the Euro zone countries declaring war on ratings agencies?  Just because they cannot manipulate private companies to do what they dictate, the Euro countries have decided to ‘clamp down’ on ratings agencies as some of them declared Greece to be in default in all but name and that Portugal’s bonds are like junk.

No one cared about the agencies in the good times or when Greece and Portugal fiddled the books to get into the Euro.  The Euro zone countries should declare war on their own members rather than try to prevent the freedom of information.  Perhaps the ratings agencies provide healthy realism to the fanciful and infinite bailout packages to these reckless countries?

The Euro looks like it is suffering from concussion…

Bubbly

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4 Comments to “Another Day, Another War”

  1. Totally Agree Bubbly. Countries should be fully vetted before joining the Euro!! We are now in a poisition where we are continously bailing out other countries when we should be concentrating getting the UK back on the track

  2. Erm, has everyone forgotted the part that rating agencies played in the financial crisis? They helped bankers sell junk bonds by not properly investingating the products they were asked to rate and then slapping a AAA rating on it because that was better than admitting that they didn’t understand the product and they got paid anyway. Trillions, yes TRILLIONS, of pounds/dollars whatever curency you want to look at, was lost, but these cowboy rating agencies didn’t do their job properly i.e. rate assets. So what has changed that they can now rate a whole country properly??

    The only reason they are still going as they are is because the regulation that’s supposed to clamp down on them (Dodd Frank Act 2010 in the US) hasn’t finished its analysis of what actually happened yet so that they can come up with new rules. I don’t trust them for a second.

  3. Thanks for explaining the agencies, mysterious pinkie and their role in banking crisis but aren’t they in their familiar territory rating government bonds and the ability of governments to be responsible and nations to stay solvent just now?

    I understand the EU’s argument that the agencies have been after, for example, Greece for some time but it is hardly a conspiracy against Greece the maths of the problem seems pretty straightforward.
    Poor Greece though it is one of my favourite countries I hope they can plate-smash their way out of this one.

    C, I don’t understand why the UK has to bail these countries out either we can’t exactly afford it.

  4. Hasn’t the past decade shown that the reliance on rating agencies is just farcical?
    They are used rather than proper due diligence and relationship building with consumers and now countries.
    Yes why are we bailing these countries out? Surely that’s what the “Euro zone” should be doing?

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