Guest fountainhall Posted February 14, 2012 Share Posted February 14, 2012 So now one of the credit rating agencies has put the UK on notice of a possible downgrade from its AAA rating. How is it, I wonder, that these rating agencies are still trusted and have any shred of credibility left? Did not their sheer inefficiency not contribute in a massive way to the chaos of 2008 and beyond? What has changed? Quote Link to comment Share on other sites More sharing options...
Guest Posted February 14, 2012 Share Posted February 14, 2012 How is it, I wonder, that these rating agencies are still trusted and have any shred of credibility left? Did not their sheer inefficiency not contribute in a massive way to the chaos of 2008 and beyond? What has changed? I remember one excellent, but sadly defunct financial website succinctly describing the rating agencies as a "lagging indicator" that responds to what the markets have already decided. That summarises their failings very nicely. Their downgrading of various western (& Japanese) governments is merely a belated response to the irresponsible borrowing that has been going on for a couple of decades. Quote Link to comment Share on other sites More sharing options...
