July 21, 2009

Credit Rating Agencies Sell Free Speech

As we continue the blame game of the GFC, litigation is coming along nicely in the US, with investors taking aim at the credit rating agents who handed out gold stars to financial institutions that were more deserving of steaming pile of doggy-doo ratings.

Keep in mind that these credit rating agencies don't just rank companies, they also rank countries and states.

It's okay though: turns out that they're in the business of offering nothing more expert or valuable than opinion, running commentary, editorial at a price.

That's their legal defense.

Free speech.

Opinion.

These guys are still in the business of offering opinions that they will legally defend under the US First Amendment protection. (Meanwhile, many financial institutions are required by law to rely on ratings.)

And again - I am so in the wrong business.

Readers should expect to receive my invoice for editorial services within seven days of reading this post, and please note the five day payment terms. Thank you.

A matter of opinion?

2 comments:

  1. Something about worshipping false prophets/profits rings through here. Honestly though, when your dabbling in the stock market, ya pays ya money ya takes ya chances.

    My financial tip, invest in toast, tea and warm woolly socks. Gold star rating!

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  2. Ah, but socks can fall down! They can and do!

    Toast and tea, on the other hand, have never failed to do their job to a quality standard.

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