AAA a Labor Myth...

[Rorschach]

The myth of the Triple A.

For so long we've kept hearing the AAA mantra from Labor.  But as the saying goes...  In the kingdom of the blind the one eyed man is king.

The AAA rating is not really the kind of objective measure of financial management it is assumed to be by many.

Remember the GFC?  Lehmann Brothers?  Remember in 2008-2009, when agency ratings gave false comfort to investors and governments on financial instruments that turned out to be junk and sent the global economy to the brink of financial ruin.

The evidence is clear that the big AAA handed out by ratings agencies should not be held in the esteem they were once held. During the lead up to the Global Financial Crisis, the ratings agencies were very quick to issue AAA ratings to all sorts of exotic financial instruments in which a lot of innocent parties, including Australian not-for-profits and a number of local governments, ended up getting seriously burned, having assumed a product with a AAA rating was a safe bet.  Remember the saying "never assume"?

On the ABC’s 7.30 report, Imad Moosa, a former economist at the IMF, explained... “They (the ratings agencies) have proved to be either incompetent or corrupt or even both”.

Other analysts have noticed how ratings don’t seem to matter much any more in any case. Greg Jericho pointed out in 2012 I think: “The funny thing, however, is that since the GFC and the utter failure of the credit ratings agencies,the markets have taken to ignoring them..."

The G20’s Financial Stability Board (FSB), which was created in the wake of the Global Financial Crisis, has recently upped the ante, by actively recommending an end to the financial system’s reliance on ratings agencies.

The FSB recommended that financial market authorities around the world work rapidly to end “the mechanistic reliance of regulatory regimes and of market participants on external ratings”, which can “lead to herd behaviour and cliff effects in market prices when downgrades occur”.

It is time to castigate, rather than embrace, the ratings agencies that have done so much harm to the global economy and made a fortune along the way.  Apparently Labor wants to desperately hold onto it's worthless AAA badge, because apparently...  that is now more important than the truth.

[Rorschach]

The Labor Party, The Greens and apparently people as dumb as Clive Palmer hang onto this AAA rating crap.

[boxy]

You should have a word with this guy. He went back in time, and plagiarised you, Grendal

http://theconversation.com/victoria-mil ... g-it-20034

[Lucas]

Welcome back boxy, long time no nipple cripple.

[boxy]

Do I know you?

[Rorschach]

Welcome back poxy.... still googling along eh.
Good for you.

Plagiarism... when you can support that with me claiming it was my work or all my work... posted on poxy miniscule internet forums for fame and fortune, then go for it.

Good article BTW
I hope you've learnt something.

BTW I was not discussing Victoria and the quotes in the article are available elsewhere... perhaps you should aim your scattergun more widely

[Neferti]

I'd say that Boxy is here to keep aussie away from the vital buttons.

Good idea AiA.

Hey Boxy.

[boxy]

You're obviously good at googling too, Roachy. At least I don't try to copy and paste the results without attribution

[Rorschach]

Oh poor poxy.... your obsessing over someone who doesn't give a toss what you think.
Your just a small minded pissant.

I don't have to do anything you think I do.
In fact I would probably not do anything you suggest just because you suggested it.
Grow up, go obsess over someone else, and stop following me around with your petty sniping.

[Rorschach]

Why don't you try for once to argue the point and stop your messenger shooting and wasting my time replying to your crap.

Next time I go to Uni and write a paper I'll supply references. But not for a bloody post on a forum like this you tosser.

Oh and BTW I already have most of the info supplied in my political archive on my computer... like the 2 quotes, you see sometimes people actually get their information from the same sources. If you include those then more than likely the majority of the post is mine anyway you cretin.