Comments on: The EU has only itself to blame for ratings mess http://blogs.reuters.com/breakingviews/2011/07/07/the-eu-has-only-itself-to-blame-for-ratings-mess/ Sun, 28 Apr 2013 15:49:48 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: luiscatan http://blogs.reuters.com/breakingviews/2011/07/07/the-eu-has-only-itself-to-blame-for-ratings-mess/comment-page-1/#comment-8048 luiscatan Sun, 10 Jul 2011 16:16:10 +0000 http://blogs.reuters.com/columns/?p=6487#comment-8048 Absolutely right! Furthermore, countries that in the past have taken the truly necessary measures and hence slashed their debt -therefore defaulted and had their credit rating lowered to junk levels - have later come back to the market with better acceptance and good credit ratings because their debt levels are now at reasonable levels. Absolutely right! Furthermore, countries that in the past have taken the truly necessary measures and hence slashed their debt -therefore defaulted and had their credit rating lowered to junk levels – have later come back to the market with better acceptance and good credit ratings because their debt levels are now at reasonable levels.

]]> By: breezinthru http://blogs.reuters.com/breakingviews/2011/07/07/the-eu-has-only-itself-to-blame-for-ratings-mess/comment-page-1/#comment-8045 breezinthru Sat, 09 Jul 2011 06:29:39 +0000 http://blogs.reuters.com/columns/?p=6487#comment-8045 Indeed, the ECB is quite smart enough to know whether or not Greece has defaulted. However, they have not the courage to confront what they know to be true. "Loaning" more non-Greek public money to Greece is morally wrong because only an abject fool would consider the move a profitable investment strategy. The ECB knows perfectly well that Greece is horribly far from credit worthy, yet they are desperate to give more money to Greece because of the fragility of the European financial system. That is why the ECB wants someone like Moody's to give its blessing. In America, a misrepresentation like that is known as "putting lipstick on a pig" to make it more attractive. There were a lot of pigs wearing lipstick here in 2007. Closing one's eyes to reality really doesn't do anyone any favors. Sooner or later, you bump into reality anyway. Greece should not be allowed to default; they should be forced to default. Poorly managed banks and governments should be forced to suffer the consequences of their bad decisions. The kinds of reforms necessary in the current financial system cannot occur through gradual evolution because the impetus for change is puny is comparison to the robust impetus for maintaining the status quo. The current financial system is rotten to its core and unfortunately can only be reformed in the wake of cataclysm. Indeed, the ECB is quite smart enough to know whether or not Greece has defaulted. However, they have not the courage to confront what they know to be true.

“Loaning” more non-Greek public money to Greece is morally wrong because only an abject fool would consider the move a profitable investment strategy.

The ECB knows perfectly well that Greece is horribly far from credit worthy, yet they are desperate to give more money to Greece because of the fragility of the European financial system.

That is why the ECB wants someone like Moody’s to give its blessing. In America, a misrepresentation like that is known as “putting lipstick on a pig” to make it more attractive. There were a lot of pigs wearing lipstick here in 2007.

Closing one’s eyes to reality really doesn’t do anyone any favors. Sooner or later, you bump into reality anyway.

Greece should not be allowed to default; they should be forced to default. Poorly managed banks and governments should be forced to suffer the consequences of their bad decisions.

The kinds of reforms necessary in the current financial system cannot occur through gradual evolution because the impetus for change is puny is comparison to the robust impetus for maintaining the status quo.

The current financial system is rotten to its core and unfortunately can only be reformed in the wake of cataclysm.

]]> By: Intriped http://blogs.reuters.com/breakingviews/2011/07/07/the-eu-has-only-itself-to-blame-for-ratings-mess/comment-page-1/#comment-8025 Intriped Fri, 08 Jul 2011 08:54:47 +0000 http://blogs.reuters.com/columns/?p=6487#comment-8025 Agreed and well placed! Agreed and well placed!

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