Tuesday, September 16, 2008

AIG - RIP? Stupid Rating Agencies

Although my company competes with AIG, it is sad to see the state they are in. While they made their own bed, someone else lit the fire. Now, the ratings agencies are stoking the fire by creating a self-fulfilling prophesy.

Rating Agency: They will have trouble raising cash. We will reduce their ratings.

AIG: Because their ratings dropped, they need MORE money and it is hard to get.

Great system: Who designed it? Torquemada?    

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