Posted on 7/22/2010, 5:24:55 PM by hiredhand
The nation's three dominant credit-ratings providers have made an urgent new request of their clients: Please don't use our credit ratings.
The odd plea is emerging as the first consequence of the financial overhaul that is to be signed into law by President Obama on Wednesday. And it already is creating havoc in the bond markets, parts of which are shutting down in response to the request....
bimp.
They are now liable. Until they decide how liable, they will not allow them to be used. This will have an interesting effect as many bonds cannot be sold if they do not have a rating. Just more destruction of the economy. I doubt it is truly unintentional.
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Ah, but this simply means that good ‘ole Uncle Sam needs to step in and provide the ratings.
Somehow, and I don’t know the answer to this, the Forrest Gump line, “Stupid is as stupid does” comes to mind.
Just what does 0bama think the problem is? Fannie Mae and Freddie Mac precipitated the financial collapse, and they are excluded from the reform law.
“This will have an interesting effect as many bonds cannot be sold if they do not have a rating. Just more destruction of the economy. I doubt it is truly unintentional.”
This can NOT be over stated! The economy will continue to grind to a halt as MOST bonds cannot be sold without a rating! This is more of the same - destroy private industry - force FURTHER government intervention!
obviously the only solution is for the government to takeover/bail out the rating firms, and then have disinterested bureaucrats and affirmative action appointees to make these ratings.
Can ANY construction project proceded without bond ratings and insurance?...meaning, can insurance proceed with bond and credit ratings?
Ok...so where am I supposed to get my score? As far as I know FICO scores are calculated based on these three credit bureaus scores. Does this mean if I walk into a car dealership and they check my credit, they come back and say your credit is “xxx”, but, ‘we can’t confirm it’s true!”.
Someone please tell, Franks, he is the boy or the girl (in his life style).
WOW!
I suddenly discovered I have a 750 credit score!... no wait... 780!
yeah, that’s the ticket
don’t believe me? call the credit agency!
Wow a lose/lose situation for the ratings companies. If someone has buyers remores or if the financial institution fails to sell out its subsription, then just sue the ratings company.
That's it.
Hah! Great post!!
I work in the construction industry - and the short answer is NO!
Yesterday, my company lost three future jobs because the project “lost funding.” IOW, the financiers realized unless they can pay for the project 100% on their own, they are dropping the projects.
Why? Because going forward, they know they won’t be able to get outside investors (without bond ratings)! We are expecting MORE of this in the construction industry and it will cause the economy to start grinding down - AGAIN!
Oh, but in his press conference yesterday, Bobby Gibbs said nothing like this would happen.
The reality is, until the regulations are written, published, then ironed out so that their application is understood, there are going to be all sorts of problems just like the above. No one wants to be the "test case" drug through regulations the hard way. And no one wants to be fined.
next up will be legislation making the 3 credit bureaus liable for civil rights suits if any link can be shown between race/gender and ability to get credit
The awful legacy of the Kenyan Clown and his circus will hang like a millstone on our posterity. He has done a remarkable amount of harm to our country in a mere 18 months, and he has another 30 to do far more.
http://www.freerepublic.com/focus/f-news/2557218/posts
Not good....
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