Today, I am posting a link to an article in THE NEW YORKER that I think you will enjoy. You must paste it in your browser otherwise it does not work, and you will get the wrong page. Sorry that it is that way, but it was sent to me that way with those instructions.
http://www.newyorker.com/talk/financial/2009/09/28/090928ta_talk_surowie
cki
The word is getting around about the financial crisis and what caused it. As I have written many many times, this financial crisis and bond market meltdown was man made. It certainly could have been avoided and had the laws that were written after the Great Depression left standing as they relate to investment securities and the Investment Act of 1940, the damage would never have been this great. The issue of the credit rating agencies is going to be key because of the position the credit ratings on debt obligations hold in the system of borrowing and lending. Major changes must be made, or, we are all headed down the same road again.
Stay tuned.
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2 comments:
WOW! Strong and direct language. Just as you've been saying -- only this article hit "The New Yorker."
This certainly validates everything you've been saying.
KUDOS, Moneythoughts!
Summer
I like this line from the article.
" But we need a divorce: the rating agencies shouldn’t be government-sanctioned and government-protected institutions and their judgments shouldn’t be part of the rules that govern how investors can act."
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