The Rating Game

We'll be hearing about Goldman Sacks for years, and rightly so. But there's a bigger fly in this ointment then Goldman Sacks and friends. The Ratings Companies. Like Moody's and Standard and Poor's. The thing is, companies like Goldman Sacks Et Al have been in the dating game with the likes of the Ratings companies like Moody's and Standard and Poor's for years. Here's how it works. In order for Goldman to get people to buy toxic garbage, they have to convince buyers it's a good, safe investment. That's where the Raters come in. They rate investments like derivatives and most other investments. A triple 'A' rating is very good, and an investment with it can get top dollar. Problem is, Goldman Sacks and others pay the raters for the rating service. Sooo. If a rater wants to get paid, like at all, they have to please the likes of Goldman Sacks. A "AAA" rating will do nicely, thank you. And here's your paycheck, thank you very much. Now. If you ask your car dealer for a good safe car, and he sells you a bomb on wheels, and it goes off, and he knew it was a bomb, and you can prove it, you got him. But with the raters, if the bomb goes off, and they knew it, and you can prove it, apparently, they got you. So the next time you hear about a good safe investment with a "AAA" rating, how are you going to feel about it? Well, just remember, they'll still respect you in the morning.