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Is there someone who trusts credit agencies today?

Investors once again dumped stocks this morning after Standard & Poor’s rating agency cut the US rating. What the heck? Who trusts the agencies which were always wrong? Those agencies are or were the problem of the mess in 2008 – 2009. Just remember companies such as Lehman Brothers and AIG! These agencies gave AAA rating to those companies and maintained positive rating (at least A) to those companies until their collapse! Lehman Brothers filled for bankruptcy on September 15, 2008 and Moody’s, Standard & Poor’s and Fitch maintained A rating!! And none of the analysts who graded those companies have been either fired or disciplined. The same sort of analysts are now grading the US and investors believe them? The Huffpost Business brought a short extract from the Congressional hearing in 2009:

“You had rated AIG and Lehman Brothers as AAA, AA minutes before they were collapsing. After they did fail, did you take any action against those analysts who had rated them?” Speier asked. “Did you fire them? Did you suspend them? Did you take any actions against those who had put that kind of a remarkable grade on products that were junk?”

McDaniel answered first. “No, we did not fire any of the analysts involved in either AIG or Lehman,”

Read the whole article here

So if the rating companies were wrong at the first time, who pays attention to them today, when they most likely didn’t take any action to gain their own creditworthiness? I don’t. For me they are the same junk as Lehman Brothers was and AIG still is. What about you, do you take into account credit ratings from rating companies?





11 responses to “Is there someone who trusts credit agencies today?”

  1. Pete says:

    A thoughtful insight and ideas about stock investing I will use on my website. You’ve obviously spent a lot of time on this. Thank you!

  2. Pida says:

    A thoughtful insight and ideas about investing I will use on my blog. You’ve obviously spent a lot of time on this. Congratulations!

  3. Terry says:

    Credit agencies are stupid! First, they did nothing a few years ago and let investors get in a trap of AAA companies who were on the wedge of bankruptcy and now they are lowering ratings and make panic again. Running from left to right without any consistency!

  4. David says:

    I can see that you are an expert in stock trading. Do you trade for a living?

  5. Hondo says:

    I do not trust them at all. I do not even look at them when making my investment decisions!

  6. Jerry says:

    I do not trust them either!

  7. John says:

    Its like you read my thoughts! I hate rating agencies as well. I feel that you just could do with some p.c. to pressure the message house a bit, however other than that, that is great blog. A great read. I’ll certainly be back.

  8. John says:

    I have read that Spain and Italy have been downgraded recently, early or too late? Huh, definitely great mess out there!

    I learned a long time ago that the measure of a man’s stupidity is his degree of racial prejudice. I am of German American decent, reiner Deutsche, for what it matters. The greatest pile of pure bull and stupidity I have ever read was Hitler’s “Mein Kamph”. Here was a man spouting racial supremacy who was himself the personification of racial inferiority. This ignorant, biased, psychopath actually spouted the extreme stupidity of “Jewish physics”, which is really what costs him the war. Underestimating any race or ever thinking one’s own race is superior to others is the mark of man who simply and frankly is not very bright. All races are factually and totally equal in every respect except that of opportunity, depending on where one is born.

  9. Bobo says:

    Credit agencies are stupid, they damage the US companies.

  10. Ido says:

    I like Hello Suckers web for great info on investing!

  11. Ron says:

    Stock index futures rise everynight…..This way all the media outlets can report first thing in the morning…………LOOKS LIKE A HIGHER OPEN ON WALL STREET……..

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