How Can We Trust the Rating Agencies Now?

Part of the Global Economic crisis' cause was the fact that rating agencies were stamping real estate bundled CDOs as triple-A rated, when they were much closer to junk. Question is who was watching the watchers - answer; No Body, who wasn't in the ballpark and I guarantee you he's not on first base. And where were those wonderful regulators? Who knows, probably at some party sponsored by Bernie Madoff for all I know.

Remember when Enron collapsed? What a scandal indeed, off balance sheet books, and it took down one of the largest companies by market cap in the US. Who was watching the watchers like Arthur Anderson; No Body, well then obviously "No Body" scored the winning run and went home for the season, because if you will recall we got that ridiculous bill; Sarbanes Oxley so that this sort of thing could never happen again; Never, indeed!

So, I ask the question; how can We trust the Rating Agencies now? We can't "trust nobody!" regardless of where they are doing the rating, what they are rating, or where the rating agency is based. By the way, what's up with Moody's breaking their promises on EU downgrades? They threw a hardball at Ireland, that's going to hurt them. Moody's and other rating agencies promised they wouldn't rate anymore EU sovereign debt for six months, what happened?

Meanwhile, China downgrades the US treasuries, which I agree should be, but they upgraded Chinese debt, CONVENIENTLY, as China's AG Bank was going for their IPO, and now we have the Chinese reducing US Treasuries by 3.6% for what Chinese debt? Give me a break, look at all those bad loans they have carefully removed off the books, let's talk reality and transparency. I guess the Chinese have learned from our banks and treasury tricks. They are buying into themselves to get a boost, and in doing so putting far too much trust on nobody.

Lance Winslow is the Founder of the Online Think Tank, a diverse group of achievers, experts, innovators, entrepreneurs, thinkers, futurists, academics, dreamers, leaders, and general all around brilliant minds. Lance Winslow hopes you've enjoyed today's discussion and topic. WorldThinkTank.net WorldThinkTank.net. Have an important subject to discuss, contact Lance Winslow.