Good argument, but the issue is oversight. I just went through a grueling DCAA audit for the company I own. Suffice it to say, I would've preferred a Tabasco enema. IMO, this purely Government-sponsored and Government-conducted audit works - better than the CPA certification/audit that I've had to pay for in the past (of course, passed it with flying colors - my books are spotless). I would love to see all of these companies that swindled their investors get audited, if not by DCAA than a comparable agency with comparable powers.
I find one sentence in ML's interview compelling "...We're paid to have blind spots." This points towards the endemic corruption that exists in the modern day commercial financial sector, not an outright theft but turning a blind eye!
Lastly, this whole "getting paid by the bond issuer to rate the bond" is the worst kind of fraud - the root cause of entire system's collapse. That's what scared the bejeezus out of the Fed, leading to the bailout - heck, if you can't trust the valuation of a few key companies, how in the he// can you trust the value of the entire economy in toto? Cheers!
About Financial Crisis
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