Ratings Firms' Influence Under Fire - WSJ.com:
"As with US credit agencies giving high ratings to subprime mortgage debt and thus exacerbating the US real estate bubble, so the ratings of sovereign debt by Basel II and the rating agencies has allowed the social spending bubble to grow.
Now that that bubble is being questioned, the government benefit affirming feedback loop is becoming increasingly uncomfortable for governments.
Who will be next? Will the markets catch on that borrowing can't exceed growth and putting savings into government benefits vs. job creating private business isn't something that doesn't have consequences?"
Wednesday, April 28, 2010
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