Wednesday, December 15, 2010
Dear President Obama: The Credit Rating Agencies Need to Be Repaired So The Economy Can Grow At A Faster Pace
Dear President Obama:
When you discuss what it will take to get our economy growing at a faster pace, please take a moment to discuss the broken credit rating system in our country. Yes, I am talking about the credit rating agencies that caused the housing bubble that resulted in the mortgage-backed bond market meltdown. The credit rating agencies act like a gatekeeper to the buy side of the fixed-income market and as such they can control the flow of credit and credit has a lot to do with the rate of economic growth. Fix the credit rating system and economic growth will take off. The Fed needs to take an active role in giving creditability to the credit rating agencies and their rating system. Triple-A ratings need to mean something and stand for the highest quality of credit. I have written several words on how to make this happen, and I am sure there are men in the White House that know this to be true. Ask Paul Volcker for his help as he understands the capital markets as they relate to fixed-income securities.
Great American Contemporary Artist