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« What next? | Main | Borne back ceaselessly into the past »

Apr 27, 2009

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Beelzebubba

Before we throw stones at wormy little guys outside of the cult that anointed them, let's go the second most obvious Bush apologist rag behind IBD, the WSJ.

"Since 1975, the SEC has anointed a small group of firms as Nationally Recognized Statistical Rating Organizations(NRSROs), and money market funds and brokerages have no choice but to hold securities rated by them. To this day, the Fed will only accept assets as collateral if they carry high ratings from S&P, Moody's and Fitch." (WSJ, 4/15)

When a government sanctions any company, whether they rate bonds, sell mortgages or build levees, some act, blamed on God, ends up driving millions from their homes. The SEC did not only sanction these firms, it barred brokers and money-fund managers from relying on any other firms when investment ratings were being sought. The firms sanctioned by the government were the ones who over-rated every instrument under their purview until the inevitable collapse in value.

I have CCS(chronic cynicism syndrome)so I have to guard against the impulsive idea that maybe they were not looking after my best interest. Certain well-connected people got fat from the deal, but the rest got their throats slit.

There are three firms which thousands of investors have used since the 80's that answer only to customers, not to governments or the companies they rate.

IDC Financial

Veribanc

Weiss Ratings

This has been a public service announcement.

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