Silver as an investment

WealthCycles: Rating Agencies Scam the World

Be prepared for the next great transfer of wealth. Buy physical silver and storable food.

After the collapse of Lehman Brothers in late 2008, you would think we should have learned a lesson—that leverage is dangerous, that the banking system is fundamentally flawed, and that ratings agencies are useless. The latest news of the imminent demise and fire sale of broker-dealer MF Global shows that those lessons were truly lost.

ZeroHedge posted the current ratings from our favorite rating agencies:

“And the winners are…. Moody’s Ba2-; S&P: BBB-; Fitch: BB+;”

And just to throw insult to injury, today Bloomberg released a video about an interesting study that confirms our worst suspicions—that ratings agencies are a pay to play operation—meaning the more a company pays, the higher the rating.  

The banking system is fundamentally flawed, and ratings agencies are useless.

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