15 Spanish Banks Downgraded

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This topic contains 8 replies, has 4 voices, and was last updated by Profile photo of Anonymous Anonymous 4 years, 9 months ago.

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  • #56522
    Profile photo of angie
    angie
    Spectator

    According to ratings agency Standard and Poors today 🙄

  • #107901
    Profile photo of Anonymous
    Anonymous
    Participant

    And the UK on negative watch. No good news today.

    Mind you, who cares what S&P say anymore? They are about as discredited as you can get.

  • #107905
    Profile photo of angie
    angie
    Spectator

    Well I agree with that Mark, it’s probably to create headlines so that their traders/cronies can profit from some market or ther.

    Yes, UK also could lose it’s triple A.

    We didn’t use to have all this in the good old days, there are far too many ratings agencies, economists, central banks, politicians etc etc all giving their often differing views on things.

    Hence the word babel from the Biblical Babylon, too many tongues all causing confusion!

  • #107906
    Profile photo of Anonymous
    Anonymous
    Participant

    @mark wrote:

    Mind you, who cares what S&P say anymore? They are about as discredited as you can get.

    Sorry, discredited by whom? The bearer of bad news is always the hated one…

  • #107907
    Profile photo of Anonymous
    Anonymous
    Participant

    @flosmichael wrote:

    Sorry, discredited by whom? The bearer of bad news is always the hated one…

    Discredited by their own woeful performance, of course. They gave sub-prime CDOs triple-A ratings, not to mention plenty of dodgy sovereign debt. People trusted their ratings, and they turned out to be no better than garbage.

  • #107909
    Profile photo of Anonymous
    Anonymous
    Participant

    I wrote a post in the Greece thread sort of relating to just this. If Mark or anyone wants to add a part about the credit rating agencies they are free to do so.

  • #107910
    Profile photo of Anonymous
    Anonymous
    Participant

    @mark wrote:

    @flosmichael wrote:
    Sorry, discredited by whom? The bearer of bad news is always the hated one…

    Discredited by their own woeful performance, of course. They gave sub-prime CDOs triple-A ratings, not to mention plenty of dodgy sovereign debt. People trusted their ratings, and they turned out to be no better than garbage.

    The problem is that the rating agencies are run be economists who have economics as their background. The CDO-s and sovereign debt and other more4 subtle stuff is led by hedge funds who employ very smart top-class mathematicians or scientists who are there only to create more and more sophisticated algorithms of making money for themselves and for their employers.

    The rating agencies are simply sometimes behind as the employees of the hedge funds are simply smarter than most of the world’s economists.
    It is that simple.

  • #107913
    Profile photo of Anonymous
    Anonymous
    Participant

    @flosmichael wrote:

    @mark wrote:
    @flosmichael wrote:
    Sorry, discredited by whom? The bearer of bad news is always the hated one…

    Discredited by their own woeful performance, of course. They gave sub-prime CDOs triple-A ratings, not to mention plenty of dodgy sovereign debt. People trusted their ratings, and they turned out to be no better than garbage.

    The problem is that the rating agencies are run be economists who have economics as their background. The CDO-s and sovereign debt and other more4 subtle stuff is led by hedge funds who employ very smart top-class mathematicians or scientists who are there only to create more and more sophisticated algorithms of making money for themselves and for their employers.

    The rating agencies are simply sometimes behind as the employees of the hedge funds are simply smarter than most of the world’s economists.
    It is that simple.

    It’s even simpler than that. The rating agencies were paid to rate toxic financial assets by the banks that created the very same toxic financial assets. The RAs took the money and gave what was expect in return – AAA ratings.

  • #107914
    Profile photo of Anonymous
    Anonymous
    Participant

    @mark wrote:

    It’s even simpler than that. The rating agencies were paid to rate toxic financial assets by the banks that created the very same toxic financial assets. The RAs took the money and gave what was expect in return – AAA ratings.

    The difference is as in saying:

    “The rating agencies were stupid or they were smart but just pretending to be stupid”. Which is which? Of course the truth is somewhere in the middle – they were both incompetent and looking for financial gains by performing some fraud.

    Everybody related to financial sectors is discredited and we are going to pay for a long time for the excesses pre-2008.

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