Rating agencies are in an inextricable situation when it comes to sovereign ratings. On the heels of their near-collapse of structured products, they must confront the issue of the credibility of sovereign ratings in a holistic way.
Tim, Tim, Tim. You've been throwing around a lot of scary words like "disaster" and "hardship" and you seem a little tense. Don't freak out. You're a babe in the woods when it comes to financial hardship, so let me guide you through this.
Many financial institutions are hopelessly insolvent, holding mountains of toxic waste that will never be worth anything. So why are we implementing policies that simply maintain a credit-based economy?
Capacity, capital, collateral, credit, and character are the "Five Cs" that loan offers learn in Lending 101. But to most small-business loan applicants in need of money, it is an esoteric and arduous exercise.