the scale of the problems now becoming apparent suggests that the financialisation of the economy has exceeded the capacity of financial markets to manage risk.
Given this massive demonstration of incompetence, the idea that US rating agencies should sit in judgement on Australian governments, none of which has ever defaulted on obligations to foreign creditors, is simply laughable. (Same source)Two of my favourite hobbyhorses - deregulation of financial markets and the incompetent but more likely corrupt behaviour of the so-called 'ratings agencies' (Moodys and Standard and Poors), in one article. Of course John Quiggin understands heaps more than I do on these subjects - and maybe even a bit more than Possum Comitatis? - it's a piece you can rely on to be pretty on the mark.
And none of these consequences were foreseen as the environment was put in place that would allow highly numerate wide boys and their ethically challenged bosses to prosper? The market will self-regulate?
Give me strength. Here comes the squadron of pigs.