tag:blogger.com,1999:blog-2948538160252327076.post2369045537921273539..comments2023-11-02T15:48:50.381+00:00Comments on UK Bubble UK Economy: 11 pointless downgradesAlice Cookhttp://www.blogger.com/profile/05753570123987780947noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-2948538160252327076.post-38596906628605556012008-12-23T16:42:00.000+00:002008-12-23T16:42:00.000+00:00But fundamentally what is the point of ratings age...But fundamentally what is the point of ratings agencies, we have a perfectly transparent system for discovery default risk - it is called a credit default swap.<BR/><BR/>What you have with ratings agencies now is the worst of both worlds, a government mandated oligarchy made up of for-profit companies.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-5627681331769656552008-12-23T09:42:00.000+00:002008-12-23T09:42:00.000+00:00No. Private research companies. There's already on...No. Private research companies. There's already one new rating agency (paid by the buy-side) that got given regualtory approval.<BR/><BR/>As an anecdote, our global CEO recently did a town hall. When asked from the floor "what have we learned" he answered "never ever trust a rating agency".<BR/><BR/>The market will adjust, if it's allowed to. Oh, this guy heads a "too big to fail" bank.Nick von Miseshttps://www.blogger.com/profile/03985951853422897135noreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-59140660325977304742008-12-23T03:43:00.000+00:002008-12-23T03:43:00.000+00:00If you put the rating agencies out of business, wh...If you put the rating agencies out of business, who then will take their place? Govt-owned agencies?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-4137078699196941592008-12-20T06:28:00.000+00:002008-12-20T06:28:00.000+00:00It also has an effect on the CDS space and amount ...It also has an effect on the CDS space and amount of collateral they need to post when trading.<BR/><BR/>The sooner these rating agencies are put out of business the better.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-59297945113899051982008-12-20T00:56:00.000+00:002008-12-20T00:56:00.000+00:00I think the downgrades are relevant... since an in...I think the downgrades are relevant... since an institution that is not AAA rated can't issue AAA rated paper. This would bring into question the ability of banks to access the facilities offered by the central bank.Anonymousnoreply@blogger.com