Public Address | Cafe | Island Life: Credit where it's due

James

Tue, 26 May 2009 09:29:25 +1200

I reckon John Quiggin is essential reading on this topic. He's been carefully explaining the conflict of interest of the rating agencies for years.

In 2003:

Policies that specifically improve the position of holders of government debt will be viewed favourably by credit rating agencies even if they are harmful…

Sofie Bribiesca

Tue, 26 May 2009 09:11:00 +1200

Why not throw the super city in too.

Sacha

Mon, 25 May 2009 23:25:32 +1200

As if English would need his dry-as-tinder arm twisted. He's been gagging to implement the orthodox solution since the last time he had control of the piggybank.

DPF

Mon, 25 May 2009 22:35:47 +1200

I charge less than S&P :-)

Vaughn Davis

Mon, 25 May 2009 21:53:03 +1200

Oops. Standard and Poor's.

Must remember to drink _after_ posting next time.

Vaughn Davis

Mon, 25 May 2009 21:50:57 +1200

Excellent post. It's astounding this didn't get more than a mention in other media (open to correction on this). I admit I glossed over it too when it popped up in the Herald... I must have been fixated on the success of Getacross. But seriously... what if Mr Poors doesn't…

stephen walker

Mon, 25 May 2009 16:39:30 +1200

i think Captiver captured it quite well, actually.

S&P, Moody's and Fitch are at the very core of the credit default swaps (CDF) and mortgage-backed securities (MBS) meltdown. these people were the enablers. how could this possibly be in dispute? and yet, here we are, business as usual (BAU). fffff.

please…

George Darroch

Mon, 25 May 2009 16:36:58 +1200

I share a feeling of disquiet that they are getting an early look though – that's just taking the obsession way to far.

And to the point, that's what we have Treasury for. They're effectively outsourcing Treasury advice.

It looks like I was not sufficiently ambitious for New Zealand in…

Gareth Ward

Mon, 25 May 2009 16:32:01 +1200

sorry, article BY Colin, from Lyndon

Gareth Ward

Mon, 25 May 2009 16:31:41 +1200

An interesting article Colin – but it may still be slightly overstated. The only reason they can "dictate" spending is that English has decided that the only important thing is our credit rating and so is doing everything to maintain that. You can certainly argue that he should perhaps be…

George Darroch

Mon, 25 May 2009 16:23:00 +1200

Sell & lease-back the Beehive

Real estate is cheaper in the Hutt Valley. Come to think of it, it's cheaper offshore.

Outsource Parliament to Bangalore. Essential functions will of course be retained at head office.

Captiver

Mon, 25 May 2009 16:00:37 +1200

Fair enough Kyle M. I'm sure I didn't "capture" anything much either.
Thanks Lyndon for the link to the Espiner piece, which I hadn't seen, and Gareth for the not-so-frothing-at-the-mouth-as-my-post explanation. Enlightenment comes slowly, if at all.

David Slack

Mon, 25 May 2009 15:57:08 +1200

I'm not entirely sure what the topic of the post was when David made it

What Lyndon said.

Lyndon Hood

Mon, 25 May 2009 15:51:14 +1200

In this instance it does *look* like they're dictating – or rather that we aim to do what will please them – when they get their own little presentation on the budget before cabinet sees it.

Colin Espiner: Who's writing the Budget?

Gareth Ward

Mon, 25 May 2009 15:00:39 +1200

Well they aren't dictating anything directly. They simply rate a country on how stable it's finances are – this is then used by people looking to lend to that country as a guide to what risk is associated with lending to that country and price their lending appropriately.
I think…

Kyle Matthews

Mon, 25 May 2009 14:59:10 +1200

I'm not entirely sure what the topic of the post was when David made it, but I don't think Captiver 'captured' it.

Belt

Mon, 25 May 2009 14:58:11 +1200

Hmmm, I've been waiting for the Telecom XT with the "real people behind it all". Tap tap tap... Anyone?

Captiver

Mon, 25 May 2009 14:51:00 +1200

Excuse rant BUT: This has been irking and intriguing me for some time, and I've written to a couple of blogs as well as biz sections of daily papers trying to get someone who knows something about this stuff to explain to me how come these ratings agencies — the…

Kumara Republic

Mon, 25 May 2009 14:46:13 +1200

We have a blog post ready to go, but we can't post it here yet, sorry. The new protocol requires that we show it to either Standard and Poors or David Farrar first.

The same Standard & Poors that's being investigated by the Securities & Exchange Commission?

I'd suggest you privatise the…

Paul Rowe

Mon, 25 May 2009 14:24:09 +1200

Sell & lease-back the Beehive

Ian MacKay

Mon, 25 May 2009 14:17:38 +1200

How about selling ACC, Telecom(Oops!) and NZ Rail. That will help a bit wouldn't it Bill?

Standard-and-poors

Mon, 25 May 2009 14:14:36 +1200

I'm sorry, but if you do that you'll have your credit limit dropped to "C--, must try harder".

I'd suggest you privatise the health system, implement an annual poll tax and introduce segregated schooling forthwith.

Public Address

Mon, 25 May 2009 14:14:36 +1200

Discussion from blog post.