Credit Agencies: Why Bother Listening to Them?
Besides Bernanke, credit rating agencies are just about useless...
From The Big Picture:
"There are three problems with the NRSROs:
1. The Ratings Agencies completely missed the biggest credit risk and collapse in a century. Why should anything they ever say be trusted by investors again?
2. They subverted their own business models from objective analysts to paid shills in pursuit of greater profits. Hence, they have failed in even their most basic obligations to investors, as well as their fundamental business structure.
3. Their status as Nationally Recognized Statistical Rating Organizations (“NRSROs”) reduces competition in analysis and ratings, and gives them unnecessary credibility.
After the colossal clusterf$#% they helped creat, why on eart are they afforded any special privileges or competitive advantages?"