US RATING AGENCIES EXTREMELY VULNERABLE TO THEIR “CLIENTS” – BE THEY CORPORATIONS OR COUNTRIES
Today’s European media reported what GEOPOLITICAL ANALYSIS AND MONITORING BLOG posted on 4th of July, namely that US RATING AGENCIES are not impartial, their influences to powerful, and that it is time to create a EUROPEAN rating agency. The fact that the USA still is AAA rated, despite being almost in the same boat as GREECE, show that they are extremely vulnerable to their "clients" - be they companies or countries. Thus impartial ratings and evaluations are almost impossible.
LACK OF COSMOPOLITAN INSIGHT AND GEO POLITICAL KNOWLEDGE
Furthermore its seems that US Rating Agencies lack cosmopolitan insight in order to understand different societies and display ignorance when it comes to consider multicultural behaviors.
In the not too distant past for example US Rating agencies intended to downgrade AUSTRIA’S AAA rating, because of the countries bank involvement in EASTERN EUROPE, distorting the facts in order to pave the way for US investment. (AUSTRIA is one of the 12 richest countries in terms of GDP) After harm was done by spreading the new about downgrading, they corrected their evaluation.
CALL FOR A EUROPEAN EQUIVALENT TO US RATING AGENCY - ON THE INCREASE
It is common knowledge that in the view of many minds, rating agencies are the secret cause of the financial crisis. Their profit - oriented behavior has harmed the markets and obscured the true risk. But state agencies are not the alternative. the dominance of AMERICAN rating agencies is destructive for EUROPE. Thus it is of vital importance to create EUROPEAN rating agencies, which should represent EUROPEAN interests, for US rating agencies hardly are genuine when it comes to represent foreign interests, other the those which benefit their own country. Such equilibrium would create more impartial ratings.
Increasingly EUROPEAN politicians voice their concern over US rating agencies "uncontrolled development" in which rating agencies assessments have greater importance and impacts then political parliamentary decisions. They also stated that it is important that EUROPE does not depend on those agencies that seem to determine over EUROPE.
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EUROPEAN UNION POLITICIANS INCREASINGLY OPPOSE INFLUENCE OF US RATING AGENCIES Updated at :
3:28 PM
Tuesday, July 5, 2011
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