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Antonio Gonçalves

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We should believe in Rating Companies?

Yesterday i have seen one very interesting documentary called "Inside Jobs" (winner oscars 2011) this documentary told us the origin of the crisis.
During the documentary we see that the rating companies are much less than we think.
At the beginning of the fall of the banks rating companies continue to rank these banks with a maximum rating and when they were forced to explain what happened only justified as being "their opinions".

We are not to be influenced by companies whose interests are more important ?

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  • Jun 18 2013: Ratings are based on nothing tangible, all they are is perceived risk in the market. The biggest example I can think of is how the US lost a little bit of it its rating during the economic slump, going from a AAA rating to a AA or something, the funny thing is it wasn't even during the main economic slow down it was about 5 months after 'rock bottom' and there was little improvement.

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