So Long Standard & Poor's?

How about making the credit rating agencies criminally liable for bad work?

Sent by Marc Naimark | 5:13 PM | 9-23-2008

The Wisdom of Crowds?

Sent by L Nalle | 5:33 PM | 9-23-2008

The Wisdom of Crowds?

Concur. It's working for Google.

Sent by Nom DePost | 7:05 PM | 9-23-2008

There's a lot of brain/computer power at both S&P and Moody's. No doubt some of their staff came from the best B-schools in the country. How could they get it so wrong? My guess is that they ran into the same trouble that most number crunchers do - they never leave the desk to do a reality check. MBA types place too much faith in numbers and we all know they are only a starting point - they tell you what, they may not tell you why. Look at weather reports, they have fantastic computer modeling but often get it wrong concerning the next day's actual weather. Perhaps this could be a wake-up call not only to people in business who forecast things using computer models, but also our B-schools. There still is a place at the table for people with the experience of history and good business instincts.

Sent by Leo | 8:01 PM | 9-23-2008

Rating agencies have made everyone lazy.

They also underpin a wrong idea - that is we can all be investors. Most will accept that we can't all play major league baseball. Most accept that they will never sing like a top opera singer. But there is this fantasy out there that we can all be great investors.

The rating agencies play into this idea by taking the homework and the work out of investing. And it's not just the common man - but most fund managers did not do their homework.

The reality is that most people do not and cannot make their fortune by investing just as only few can do the same playing ball.

I say do away with the rating agencies and put the work back into having a view on risk and value

Sent by Robert Paterson | 1:10 PM | 9-24-2008