I discussed the credit rating agencies a few years back in the context of Gary North’s model of how government captures and destroys the effectiveness of an industry by offering it bait. After taking the bait of entry-preventing regulation, the cartel becomes fat and lazy and does its job poorly. See here. The SEC organized the cartel in 1975. The laxity of the rating agencies was known to the regulators. Congress is now in on the act. The thorough destruction of a free market in ratings is now at hand. I did not know of how bad the situation actually … Continue reading Ratings agencies mauled by Congress