Sta Random Stuffs

Krugman: Berating the Raters

It seems crisis root cause might be corruption. Indeed, some mails show collusion between Wall Street firms and credit rating agencies who are needed to be able to sell some assets - because these agencies give score to them - to, for example, the pension funds. Question is then, how can we limit corruption at that level? Of course, what comes directly to my mind is … how one could yet think “free” market is working?! Whatever it be communism or capitalism, both are idealized view of the world and none works as theory predicts. We *must* deal with human imperfections … that’s what I expect from governments.


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