Why expect S&P, Moody’s, or Fitch to know it’s junk when expert musicians can’t tell a Stradivarius from a fiddle?
Victor Ginsburgh, 16 January 2012
Economists have shown that wine tasters can’t tell Bordeaux from budget plonk, movie critics are prone to giving biased reviews, and Olympic judges are often judging what’s best for them to say rather than what’s in front of them. This column asks why we should expect credit-rating agencies, with their own unique set of ignorance and incentives, to be any different.
Full Article: Why expect S&P, Moody’s, or Fitch to know it's junk when expert musicians can't tell a Stradivarius from a fiddle?
