@deadbirdflyinghome Can you be specific about what is wrong with the description? I don't disagree that the ratings agencies gave toxic securities inappropriately positive ratings, in fact I said exactly that towards the end. Curious to know what my error is here. thanks
Great video. Great explanation. Could you explain briefly how these credit rating agencies do in order to rate? what do they look at in order to measure how high or low is the risk is for the investors investing on those shares/bonds, etc.. Thanks!!
During the boom years, the rating agencies were in bed with the Wall Street and the very securities they were supposed to rate. Therefore, they failed miserably to properly rate them, resulting in the financial crisis, which caused many investors to lose their shirts.
@h1rschp Nothing of what you said I find wrong; In fact, I appreciate the explanation. Easy to relate to and clearly encapsulates the fundamental concepts. When I said wrong in practice I mean the very essence of the free market has been gutted and left out to dry. The titans in the market are bending all the rules for profit. For example free market dictates, you lose, you tank. But that never happened to the titans; They got bailed out. "Free" Market has died. the Rigged Market era has begun.
isn't it more logical if banks paid the rating agencies to rate the borrowers? Not borrowers paying the rating agencies to rate them, you have a conflict of interest here.
Why would the banks (the lenders) pay the rating agencies to rate the borrowers? The borrowers are the ones that need to convince the lenders to extend a loan to them, makes more sense for them to pay the rating agencies instead.
Cant say enough how much i enjoy your videos!
great explanation!! So happy your back, one of my favorate youtube channels!!!!
BRILLIANT !! so happy u r back to Marketplace
your videos about the economy are really the best
Wonderful Explanation Professor! :) I am glad you are back.
@deadbirdflyinghome Can you be specific about what is wrong with the description? I don't disagree that the ratings agencies gave toxic securities inappropriately positive ratings, in fact I said exactly that towards the end. Curious to know what my error is here.
thanks
Do the investment companies or banks go to the countries or the agencies for the ratings directly? How does the communication process work?
That was an excellent explanation dude!
amazing simplfied explaination
Great video. Great explanation. Could you explain briefly how these credit rating agencies do in order to rate? what do they look at in order to measure how high or low is the risk is for the investors investing on those shares/bonds, etc.. Thanks!!
First and foremost in this example, the more/better beer you give Filch the better grade you would receive.
Terrific channel ! thank you so much
During the boom years, the rating agencies were in bed with the Wall Street and the very securities they were supposed to rate. Therefore, they failed miserably to properly rate them, resulting in the financial crisis, which caused many investors to lose their shirts.
I love these videos. Can you teaching videos on trading stocks and options? The forex too?
Great explanation!
i loooooooooooove these videos !
Who rates the raters? - is a question one could ask...
Excellent!
Thanks Good Video
@mjbarrowful You are not confused. The entire ratings system is based on a conflict of interest.
Great example
very informative!
@h1rschp Nothing of what you said I find wrong; In fact, I appreciate the explanation. Easy to relate to and clearly encapsulates the fundamental concepts. When I said wrong in practice I mean the very essence of the free market has been gutted and left out to dry. The titans in the market are bending all the rules for profit. For example free market dictates, you lose, you tank. But that never happened to the titans; They got bailed out. "Free" Market has died. the Rigged Market era has begun.
excellent.
but...if ratings agencies get paid by the one getting rated, doesnt that pose a conflict of interest? :s
Lovely!
@engladst The accuracy of their ratings.
Theory is a great thing, practice, entirely another.
soooo..u can't really trust those rating agencies? :p
So they were bribed by banks
isn't it more logical if banks paid the rating agencies to rate the borrowers? Not borrowers paying the rating agencies to rate them, you have a conflict of interest here.
Why would the banks (the lenders) pay the rating agencies to rate the borrowers? The borrowers are the ones that need to convince the lenders to extend a loan to them, makes more sense for them to pay the rating agencies instead.
perhaps we should all stop drinking
June's a woman. that's why she's more risky than terry.
Not the best explain