The state of global economics and the European situation in particular couldn’t be better for rating agencies Moody’s, Standard and Poors and Fitch.
They are opening one bottle of champagne after the other: since European ministers of finance decided to bail-out Greece, business is booming financed by the European tax payer. By the way, the next bottles of the divine nectar are already chilled, because after the junk state rating of Portugal and Ireland the next bail-outs will be on their way.
It is funny though, that everybody seems to have forgotten that these agencies, just before the collapse of AIG had them rated with a triple A status. For people outside the financial world, it is obvious that “Moody’s and friends” are playing Russian roulette, yet most leaders and politicians are taking them still serious. In the meantime economist should do what they are educated for: revise the economic theory of never ending growth into one that is focused on stability and consolidation. The international socio-economical landscape has changed since the second World war and the financial structure should have changed accordingly.
Do we really need another crisis, to realize that a system change is to be preferred above a devastating system crisis?