Indispensable Definitions in Economics

I've studied now Philosophy And Jurisprudence, Medicine, And even, alas! Economy All through and through with ardour keen! Here now I stand, poor fool, and see I'm just as wise as formerly. Am called a Master, even Doctor too, And now I've nearly ten years through Pulled my students by their noses to and fro And up and down, across, about, And see there's nothing we can know! Goethe: Faust

Monday, March 8, 2010

Rating Agencies

Rating agencies pretend to assess the future creditworthiness of firms and governments. Barred from knowing the future they assess current creditworthiness and utter expensively what everybody gets from news anyway: They upgrade when news are good and downgrade when news are bad. Still, there are sufficient fools to be fleeced to make rating a lucrative business.
Posted by at 5:48 AM

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