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FinancialYoung Blog Other BlogsThe Pension Game Has ChangedAugust 08, 2010 Giving to A Greater Cause August 05, 2010 Playstation 3 helps Provide Profit July 29, 2010 Google Gets Greedy July 28, 2010 Hayward Out at BP July 27, 2010 Amongst All the Losers, We Have a Winner October 08, 2009 Newborns Be Living Longer October 07, 2009 George W. Bush: A President's Pension October 06, 2009 The $125 Million Dollar Mess October 05, 2009 Clinton Speaking Fee; Out of This World October 02, 2009 The Beginning of the End for the Rating Agencies? Texting While Driving September 30, 2009 This Day One Year Ago. A 777 Point Drop, Ouch! September 29, 2009 Go Where the Demand is, Right? September 28, 2009 The Great Disconnect September 25, 2009 3 Things to Remember When Buying a Mutual Fund September 24, 2009 Netflix Created Thanks to a Trip to the Gym September 23, 2009 There Will be Market Bubbles Again September 22, 2009 Match Your 401(k) Up Against the Match of Others September 21, 2009 Remember the NHL Lockout? September 15, 2009 Money Back Guarantee September 14, 2009 Home Prices Still Falling? September 11, 2009 Larry Ellison is Truly an Oracle at Oracle September 10, 2009 The Coolest Billionaire You've Never Heard Of September 04, 2009 Poor Nicholas Cage September 03, 2009 Ever Heard of Leonard Kleinrock? September 02, 2009 A year After the Carnage September 01, 2009 Disney Does it Again August 31, 2009 Oh No! August 27, 2009 Profit Margins Out of This World! August 25, 2009 Y Do We Type Like This? August 24, 2009 Vick, A #1 Seller August 21, 2009 Doesn't Seem Like it; Does It? August 20, 2009 AIGs $7 Million Dollar Man August 19, 2009 Sorry Tiger, You Got Beat. But You Still Make Me Laugh August 18, 2009 Data Transferring August 17, 2009 Seriously??? August 14, 2009 The $250,000 Kid August 14, 2009 What is an ETF? And Why Would I Care? August 13, 2009 230 MPG, Are You Kidding Me?!! August 12, 2009 Manning on Fast Track to Big Money August 10, 2009 It Pays to Caddy August 07, 2009 Microsoft's Other Founder August 06, 2009 Are Video e-Magazines Going to be the Next Big Thing? August 05, 2009 How Do iphone Application Developers Make Money August 04, 2009 Why it Will Take Time for the Broken to Get Fixed August 03, 2009 Losing $26 Million, Ouch! July 31, 2009 Here We Go Again July 30, 2009 The Difference 1% and $25 Can Make July 29, 2009 Spelling Mistakes Are a No-No July 28, 2009 The 23% Return July 27, 2009 I Wish I Could Get Paid to Shut Up July 24, 2009 Payback is a Mother... July 23, 2009 Don't Do Nothing July 22, 2009 Give Me Back My Money July 21, 2009 The Changing of the Guard July 20, 2009 The Next Wave of Video Games. Ready or Not Here They Come July 17, 2009 A Coffee Table = A Computer? July 16, 2009 The King of Pop and His Estate Plan July 15, 2009 Bye Bye Bye GM Shares; For Now July 14, 2009 Facebook Making a Huge Presence July 13, 2009 The Roth 401(k) July 07, 2009 Missing the Employer Matching Contributions to my 401(k) July 06, 2009 Young People Saving is Like Cleaning the Garage July 02, 2009 The Future of Athletes Salaries July 01, 2009 We're Half Way There June 30, 2009 Compuond Interest June 29, 2009 Now That's a Great Deal June 26, 2009 Ding...!!! June 25, 2009 The World is "Fast Food" Changing May 26, 2009 Smart Phones May 20, 2009 If It's in the News, It's Already too Late May 18, 2009 Shoulda, Coulda, Woulda May 13, 2009 Don't Believe Everything You Read May 12, 2009 If I Only Knew Then What I Know Now May 06, 2009 Credit Cards - I Told You So May 04, 2009 For Gen Y, Now is the Time! May 01, 2009 Chapter 11 Bankruptcy; What Now for Chrysler? April 30, 2009 Time is Our Greatest Asset April 30, 2009 This DRIP is Beneficial April 29, 2009 Sticking It Back to the Government April 28, 2009 The Amazon Kindle - Replacing Books April 27, 2009 Retirement Doesn't Have to Be a Mirage April 22, 2009 American Idol? More like…American, Are You Kidding Me? April 16, 2009 Bill Gates Has Nothing on History April 15, 2009 New York vs. New York...Stadium Style April 14, 2009 Generation Y's Hefty Bill April 14, 2009 Behind the Scenes at Twitter April 13, 2009 GM's CEO Not So Big Pay-Day March 05, 2009 Manny Being Manny March 04, 2009 Bonuses Make Me Laugh February 24, 2009 NFL Franchise Tag February 20, 2009 History of the iPod February 20, 2009 I Wish I Knew Then What I Know Now February 17, 2009 Tiger Woods Makes Me Laugh February 13, 2009 What is Our Enonomy's Engine? February 12, 2009 Saving However You Can. Here Are Some Tips February 04, 2009 Super Day for GE Thanks to the Super Bowl February 02, 2009 We Might Need More Than Another Stimulus Package January 27, 2009 Are Credit Cards Next to Fall? January 15, 2009 Welcome November 28, 2008 test July 01, 2008  The Beginning of the End for the Rating Agencies?Rating agencies such as S&P, Moody’s and Fitch rate securities as to the credit quality of the underlying municipality and corporation, that are then sold to individual and institutional investors. It is this credit quality that investors have to decided how risky an investment possibly is, which is an extremely important piece of information to know before buying a certain investment. The problem is that those municipalities and corporations that are issuing the investments are the ones paying the rating agencies. That would be like the winning party of a litigation paying the judges salary; that would never happen and doesn’t make any reasonable sense. Yet, that is how rating agencies are paid, by those municipalities and corporations that are looking for a good credit rating. It’s a fact that the rating agencies poor judgment over the past couple years played a huge impact in the fall of many companies and investor wealth and many experts believe that S&P, Moody’s and Fitch’s (the 3 rating agencies) reputations are tarnished beyond what can be repaired. Currently, Congress is debating a bill that could possibly due away with the rating agencies. It is a very sensitive subject, because if the rating agencies are eliminated, that will put a lot more pressure on individual investors to do their own due diligence before buying these investments. |
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