Aljazeera's Investigative Report on Illegal Logging In Sierra Leone

You have seen the investigative report by Aljazeera on illegal logging in Sierra Leone and hopefully you have read my views on the report. Now I want to hear from you. What do you think of the report. Please post your comments. Thanks!

Credit Rating Agencies still helping Banks Bilk Citizens

The Credit Ratings Agencies are still helping banks bilk citizens by wielding the dreaded credit downgrade sword of Damocles over the heads of citizens in countries whose finances were devastated by the great recession of 2008. By lowering their credit ratings, banks can continue to charge a higher interest on loans to these countries and the agencies set up to help them recover. This makes it harder for these sovereigns to refinance their high interest rates, resulting in even more indebtedness and the concomitant poverty of the citizenry.

Let’s recap here. The banks in conjunction with the credit agencies packaged worthless subprime loans into sophisticated fiduciaries and have them rated as credit worthy by S&P and other credit agencies. Some of the banks knowing that these fiduciaries are worthless, even betted against them incognito (by not letting those investing on these worthless piece of papers know). Most people in the know agree that this is fraudulent and yet no charges have been brought against these institutions. Instead, they received billions of dollars in bailout money from tax payers. Most of those who suffered such great loss are ordinary citizens in the form of philanthropies that help needy people; States; Cities; IRAs; 401Ks; pensions, etc.

While the people are suffering, the S&P Credit Rating Agency is busy inoculating itself against any regulations to protect customers by:

1. Moving to downgrade the Credit Ratings of major sovereigns seeking to regulate these agencies so as to stop them from colluding with Financial institutions as they did leading up to the great recession of 2008. Now if any of these sovereigns move to regulate them, they can claim retaliation as a defense in their fight against any common sense regulations.
2. This keeps the interest rates high so states/countries cannot take advantage of refinancing existing debts to a lower interest rate or even borrow at the current low rates in a bid to fund development and growth.  

·        Hence, the banks in collusion with the credit ratings agencies, continue to bilk fellow citizens the world over. How else can you explain the swift move by the S&P to downgrade the EURO agency created to help bailout indebted sovereigns?

     The only one reaping the benefits of the lowering of these ratings and the accompanying high interest rates are the banks. So even as we try to dig out of this ditch of a recession, the S&P and its ilk are helping the banks profit at the expense of the people. Let us know what you think.