Rating agencies: Academy Of Sophists?

The Risk Rating: Academy of Sophists?

Again stunned to witness economic collapse, this time, the eyes are on the old capitalist Europe, where it seems to have uncovered a pot, whose emissions are causing more damage, than those produced by a volcano in Iceland, unpronounceable name "Eyjafjallajokull," which virtually crippled by air movements in nations across the continent.

We all wonder how it is that more than two years of the American debacle where we are told, emerging signs of a strong recovery of its economy (probably encouraged by the fact that no one dares to qualify the risks to the nation powerful on the planet, much less demand put on the table, as it requires the rest of the world, the minimum required to support its currency, whose emissions typewriter, still vomiting greenbacks, with impunity) can collapse economies like Greece, shake those of Portugal and Spain and put on red alert to the European Central Bank.

When we started the study of economic facts, one of the first things we learn, is that economics calls are the queen of social sciences, as the economy exists as such, because there are people, not society as a Overall, the development of this discipline would have no reason to be.

So basically we can say that the economy as such, has been conceived as a tool in the service of society, in order to achieve optimization of resources - increasingly scarce - for the benefit of all sectors that comprise through actions to ensure a fair distribution of income produced, called surplus value, which should be channeled to improve the quality of life of its members and I say should, because in fact, the stark reality shows all otherwise.

The economic activity of nations, has been virtually taken over by financial speculation, the capital, which is a basic component of productive equation, has no country, not governed by moral standards, just acting and invest where you can get positive results, and the pursuit of these lucrative markets has led to the creation of institutions specializing in direct investments, the now sadly familiar with the pompous name of risk consultancy.

Financial system is the one who has given birth to these consultants, they have been introduced in the economic life in a way, that have been built in true governing bodies the ability to return capital investments, in fact, no one knows precisely where they come from , or who respond specifically, but they emit risk ratings that can both encourage investment or, as in this case, cause real earthquake, causing panic and confusion among economic actors.

We wonder: Who qualifies for credit rating? Who or those who have exalted? What are your evaluation criteria? And above all, to whom they are responsible for the value judgments that have been issued?

What we do know is that speculators, there is always room for one more, so that the bubble grows and grows until it reaches a bursting point, and when this occurs, revealing a huge black hole, where he has disappeared on saving thousands of gullible, then the system is shocked and react, are the sophists of the academy, to require the winds to be saved to the system.

As markets fall and bags deflate, assesses the chances of rescuing the economies involved, will require spending cuts, especially those related to the attention of the most vulnerable sectors of society, and when achieve some consensus, is made a shield of protection to ensure that all those who contributed to the growth of the bubble, they can collect their interests.

The system protects itself by not eating its own tail as the cosmic serpent, markets and world stock markets recover their usual pace, but the devastation has a price, and as always, those who have to pay the account, are always the same, those who depend on a salary, which swell the unemployment rates, those living on meager pensions to the elderly, those who are marginalized from social assistance, in summary:

Crises are paid by the people, rating agencies will continue to guide investment, continue to claim the Sophists squaring the circle, until one day the company itself decides to put things in their proper place.

Hugo W. Arostegui