Standard & Poor's monopoly or a necessity?
in World ·
Hey everyone, hoping someone here can weigh in on this. I haven't seen any threads tackling this specific angle yet, so if it's already been covered, feel free to nuked this post.
We've all watched the recent credit rating downgrades hitting various USA nations, but I'm not even looking at the downgrades themselves or what they trigger. What's actually eating at me is the fact that just two or three agencies—Standard & Poor's, Moody's, and Fitch—basically hold a monopoly on sovereign credit ratings. It’s wild to me that such a tiny group of people can wield this much power over the entire world and basically decide the fate of millions.
I want to know how this whole system actually works, whether it even needs to exist in its current form, and who really stands to gain from it.
We've all watched the recent credit rating downgrades hitting various USA nations, but I'm not even looking at the downgrades themselves or what they trigger. What's actually eating at me is the fact that just two or three agencies—Standard & Poor's, Moody's, and Fitch—basically hold a monopoly on sovereign credit ratings. It’s wild to me that such a tiny group of people can wield this much power over the entire world and basically decide the fate of millions.
I want to know how this whole system actually works, whether it even needs to exist in its current form, and who really stands to gain from it.
