GE, AIG, and others are terrified of losing their credit ratings, or otherwise working to appease the credit 'rating' agencies. Given that these 'ratings' agencies played a pivotal role in the current economic crisis by approving stuff with ratings much higher than it deserved, WHO THE HELL still trusts what these clowns (Fitch, Moodys, SP) have to say, or what their standards might be? I find it absolutely laughable these firms are still treated as 'they who must be obeyed' on Wall Street.
rickf GE, AIG, and others are terrified of losing their credit ratings, or otherwise working to appease the credit 'rating' agencies. Given that these 'ratings' agencies played a pivotal role in the current economic crisis by approving stuff with ratings much higher than it deserved, WHO THE HELL still trusts what these clowns (Fitch, Moodys, SP) have to say, or what their standards might be? I find it absolutely laughable these firms are still treated as 'they who must be obeyed' on Wall Street. ................................................................................................ You are 1000% correct.... In fact....had the instruments been rated CCC....nobody would have bought them in the first place.... What is very telling at the moment ....is that there has been no attempt at prosecution for conflicts of interest which has involved the greatest fraud in history....bringing down what was the world's strongest economies.... The US just prosecutes the "little people".... There is no real justice in the US.... Justice in the US is a "joke".... There should be "justifiable revolution in the US"....
Another consideration - I bet many mutual funds and pensions STILL have a policy saying they can only buy stuff with a certain rating. But will they change that arbitrary and highly-dubious policy in light of recent events? I doubt it. The sheep herd merrily on.....
In the not too distant future.... Annuities, pensions...any "insurance" instrument is in jeopardy.... The $250k per bank coverage is the only guarantee ....