Franken’s Progress?

The Franken amendment put the SEC in charge of assigning who rates what deal.

Is this progress?

Let’s use the system we have in place.

After all of the trouble and doubt we have been through, let’s have the investor be responsible for his investment decision. If the NRSROs are so corrupt, and the ratings so valueless, they will be out of business without government involvement.

This will guarantee a slowdown in credit creation and make it more expensive in the middle of a recession.

If we are trying to prevent “ratings shopping,” this isn’t the way to do it.

Is there any problem that can be solved without government intervention? ANY?

Senate Passes Plan Aimed at Eliminating Credit Rating ConflictsBloomberg, May 13, 2010

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