Senator Sanders calls for the ratings agencies to be nonprofit

Discussion in 'Economics' started by Sotnis, Jan 6, 2016.

  1. Sotnis


  2. Baron

    Baron ET Founder

    I'm not generally a Bernie Sanders fan, but having ratings agencies being non-profit is a good idea. It's hard, if not impossible, for a company to be completely impartial and customer centric all at the same time.
    d08, der_kommissar and DarthSidious like this.
  3. That's an interesting concept when you consider the role that they played in the 2008 meltdown.
  4. speedo


    They blew the 2008 call but I wouldn't be surprised if they weren't coerced by Wall Street, Washington or both to stand aside while a solution was found. Anybody with any brains knew full well that there was a mountain of toxic, non-performing paper and the problem was huge.

    Making the agencies non-profit sounds good on paper but does not exclude them from other forms of corruption. Bernie also want to remove banking professionals from the FED. Who does he plan to replace them with?....politicians, academics, bureaucrats?
    Cswim63 likes this.
  5. Banjo


    He's getting too much big $$ and power stacked up against him. They will wash him out. Ideas don't matter if they don't have $$ money behind them.
  6. speedo


    Correct, the power establishment has chosen Hillary. The deals have been cut and the turf carved up.
  7. ktm


    That's the issue with many of these "great ideas". Everything on the surface sounds wonderful, but there's generally a catch or loophole, engineered and assured by the lobbyists of the industry affected. Both parties are equally guilty.

    Even without the nefarious intent of creating a loophole, you run into speedo's point - the best people for many jobs are those that best understand the industry, by having worked there and managed it. Much of what passes for reform or ideas are just media fluff designed to lather up the base. In terms of the rating agencies, I agree with Speedo's point that their own performance over the past decade or so has rendered their opinions nearly worthless.

    If you want to know how risky a bond is, look at the current quote. Traders know.
    MoreLeverage and speedo like this.
  8. Well said...Politicians are full of reasonable ideas, reforms, etc...while on the campaign trail...As soon as they are sworn in, it's a complete about face (lobbyists and the power structure)...Then a few years after they leave office, they also seem to "come clean" to some extent.
  9. Banjo


  10. This is a great idea, but it will never happen. Sanders is a big dreamer!
    #10     Jan 6, 2016