Joke related to US rating agencies

Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
#1
Tell me what I want to hear

There is a facetious joke among accountants that goes like this. A new accounting grad goes in for an interview and the partner at the accounting firm holds up a number. When asked what number is printed on the card, the new grad reads “7.” The partner says, “Thank you, we’ll get back to you.”
A second accounting grad comes in for the interview and the partner again hold up a number. Again, the grad reads “7.” The partner says, “thank you, we’ll get back to you.”
Finally, a third accounting grad comes in for the interview and the partner again holds up a number. This time the grad says, ”What number do you want to it to be?” The partner says, “thank you, you’re hired.”
The financial marketers could also shop around and have the ratings agencies compete until the marketer eventually found a rating agency that would allow the investment house to bundle as many high risk BBB mortgages as possible in the AAA package without sacrificing the overall AAA rating.
The big three ratings agencies doubled their income from 2005 to 2007 by tagging these new ratings on new Collateralized Debt Obligations and Mortgage-Backed Securities. The market purchased some 5 trillion of these instruments through banks, mutual funds, hedge funds and pensions, and the presidents of the big three ratings agencies collectively earned $80 million from 2002 to 2008.
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
Reply
#2
tat's terrible, ain't it? Big Grin

To sell 5 Trillions and make ONLY 80milos out of it over 6 years?!!! where's the motivation?!! Tongue

haha! Big Grin
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR! 
4) In BULL, SELL-SELL-SELL! 
Reply
#3
Ya lol! ikan bilis like me don't know why still motivated to be in the Market after 26+ years---making what GOH CHOCK TONG's wife said.
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
Reply
#4
(09-08-2014, 01:56 PM)Temperament Wrote: Ya lol! ikan bilis like me don't know why still motivated to be in the Market after 26+ years---making what GOH CHOCK TONG's wife said.
On 2nd thoughts, perhaps that's the only thing i learn, can occupy my whole life. If not i will be bored to death or go bonkers--most probably.
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
Reply
#5
Lolx, some classical jokes in this thread =P
Reply
#6
Ha! Ha!
No joke really.
The jokes may be classical but most experts believe without the participation of the TOP 3 RATING agencies, perhaps the last financial fiasco, GFC might not happened.
Most people believe, this is not the last "new financial product" from the LAND of the STATUE of LIBERTY".
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
Reply


Forum Jump:


Users browsing this thread: 1 Guest(s)