SUBSIM Radio Room Forums - View Single Post - Major editorial: how and why the Euro became a ticking bomb

Diopos · 10-07-11, 05:26 PM

Really interesting these Fitch et al rating agencies:

Day 1: [Fitch et al ]: It is our assessment that bank XXX has not a positive outlook so we downgrade it.
Day 2: People start moving money out of bank XXX because it is downgraded by the experts
Day 3: [Fitch et al ]: Bank XXX is additionaly experiencing an outflow of deposits worsening its prediction so we downgrade it (again).
Day 4: Panic sets in. Bank run.
Day 5: [Fitch et al ]: Bank XXX is now reduced to junk. Of course we warned you from Day 1.

Eventually you don't quite know if these bastards rate you or blackmail you (not that it really matters in the end).

Destruction via negative feedback loop. It is so obvious it should banned.

Or taxed!

.

10-07-11, 05:26 PM	#8
Diopos Ace of the Deep Join Date: Jul 2008 Location: Athens, the original one. Posts: 1,226 Downloads: 9 Uploads: 0	Really interesting these Fitch et al rating agencies: Day 1: [Fitch et al ]: It is our assessment that bank XXX has not a positive outlook so we downgrade it. Day 2: People start moving money out of bank XXX because it is downgraded by the experts Day 3: [Fitch et al ]: Bank XXX is additionaly experiencing an outflow of deposits worsening its prediction so we downgrade it (again). Day 4: Panic sets in. Bank run. Day 5: [Fitch et al ]: Bank XXX is now reduced to junk. Of course we warned you from Day 1. Eventually you don't quite know if these bastards rate you or blackmail you (not that it really matters in the end). Destruction via negative feedback loop. It is so obvious it should banned. Or taxed! . __________________ - Oh God! They're all over the place! CRASH DIVE!!! - Ehm... we can't honey. We're in the car right now. - What?... er right... Doesn't matter! We'll give it a try anyway!