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In August 2011, the U.K.'s The Independent stated that the head of sovereign ratings at Standard & Poor's (S&P) "might be the most powerful man in the world that you've never heard of." S&P had just cut the triple-A credit rating of the U.S. down to AA+, a move that "changed the financial world."
It's refreshing to see some Canadian mainstream media columnists challenging the influence of Moody's and the other big credit ratings agencies (CRAs). On July 14, the Toronto Star's Martin Regg Cohn wrote "... it's unclear that those overrated credit rating agencies still hold the sway they once did." On July 17, Rick Salutin questioned their "influence and arrogance."
Related rabble.ca story:
"Yats is the guy ..." high-ranking American State Department official Victoria Nuland explained on the phone to the U.S. Ambassador to Ukraine. Their conversation was made available on the Internet by Russia, and got wide attention mainly because Nuland also said: "F..k the EU."
A former central banker ready to apply austerity policies to his country, Arseniy "Yats" Yatsenyuk is now the interim Prime Minister of Ukraine, until the May 25 elections are held. Former President Viktor Yanukovych fled the country, and was deposed by parliament late in February.
Are you ready for the Western world's economy to crash -- again?
More banks will go under. Many tens of thousands of people will again be thrown out of work. Billions of dollars in "investments" will disappear into thin air.
I believe it's not a question of "if" financial markets and the economy will crash again, but "when."
Clearly the entire economics establishment, with about a million people on the planet involved in some aspect of economic analysis, planning, risk management, and forecasting, turned out to be turkeys owing to the simple mistake of not understanding the structure of Extremistan, complex systems, and hidden risks, while relying on idiotic measures and forecasts -- all this in spite of past experience, as these things have never worked before.
- Nassim Nicholas Taleb