August 8, 2011

Why are we worried? Credit Ratings are bullshit!

"S&P's ratings express our opinions. They do not speak to the market value for security, the volatility of it's price, or its suitability as an investment." -Deven Sharma, Standard & Poors Credit Rating Agency

"Our credit ratings are just opinions." - Stephen Joynt, Fitch Ratings

"[Credit Ratings] are opinions, and they are just opinions." - Raymond McDaniel, Moody's Corporation

Sure, here they were testifying before congress on their AAA rating for subprime mortgages. But hey! They still said it! It's in the congressional record!

Credit Ratings are total bullshit! Why should we take them seriously when they downgrade US Treasury Bonds?