[DEBATE] : Zalk on ratings agency and the developmental state
Riaz K Tayob
riazt at iafrica.com
Wed Feb 13 10:37:18 GMT 2008
Zalk is spot on about the role of ratings agencies - they have been in part responsible for the subprime crises that is currently unfolding. What is incoherent from SA government perspective is that at the WTO, South Africa is making offers on financial services that would greatly (inadvertently and/or indirectly) increase our reliance on these "shady" ratings agencies.
Strange how SA is getting advice from them while the ratings agencies are advised not to downgrade this toxic money (subprime paper) as this may spark fears in the market... it seems like ratings is not about investors - it is just another business, something the Germans have picked up on but a little late as they are reeling from all the AAA-rated investment grade subprime paper they bought...
Zalk on ratings agency and the developmental state
The curious incident of the ratings agency and the developmental state
by Nimrod Zalk
Something strange happened last week. An international credit ratings agency told us we should act more like a developmental state.
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