Re: The Longest Thread Ever v28
There are a lot of problems associated with the rating agencies. But the biggest thing is, they actually have no legitimacy to rate countries. They are right, though, and that makes it difficult to stop them. They are an indicator for people who invest in those countries/companies, and rely on the rating from these experts (Though the state has enough competent economists to see that for themselves).
There is talk of founding a european rating agency, but there you have the problem with the legitimacy again. What would be theirs? But there is also no law that forbids the analysis of the economies of countries.
The way Angela Merkel reacted is the only way to stop the agencies to have too much influence on the markets. Just say that it is irrelevant and the countries economy is not influenced by decisions of Moody's or whomever. We still have a economic growth rating of over 1% and no recession, so that shows that a reduction of the German rating would not be correct.
But you also have to see that they are right in some cases. Nothing against your homecountry Num, but Portugal is simply not a good area to invest in at the moment. Such is Greece, Spain. I assume that they want to pressure the EU to get the €-rescue going again.