Value Investing Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Madharry who wrote (33815)	3/17/2009 9:09:41 AM
From: R2O	Read Replies (1) of 78999

amazed that the rating agencies have any credibility remaining at this point. Were ratings just opinions, all would be fine. The problem is they are written into debt instruments and cause forced real world activities. And all of it seems to be subjective: the first 'rating' that seems to have an objective observable is at 'C' --- default. Since we don't know the real details of how the ratings are determined it is all a mystery. So why would one use them at all? Answer: That's all you got. I don't know how it was done before there were 'rating agencies'. I would guess there is a very long history spanning centuries and involves insurance that actually pays off on physical world events. How to fix it: Publish algorithms. Publish data used for calculations. Calculation not cogitation. R2O

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next