Thursday, 8 January 2009

Biased rankings partially to blame for crisis

Many investment decisions in global financial markets were made based on rankings made by international rating agencies, which are recognised establishments.

In line with these rankings, some shares sky-rocketed, while others plunged, as if rating agencies have a magic wand that enables them to control stock markets all over the world.

However, the global financial crisis revealed that such rankings were custom-made to match the interests of certain financial institutions in a way that enabled them to achieve biggest share of profits.

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