The incompetence defense

A handful of idiots in companies, that have demonstrated incompetence for many decades, are likely to "change the rating," on US debt next week. They are masters of their game, accountants of supreme precision –the same idiots who held high ratings on investment banks, that went bankrupt, just couple of years ago – perhaps because they knew the bankers from their country clubs. This time around, they are adamant to correct their mistakes from last time – and the fact that they are not playing tennis or golf with most of the 7 billion people, help them make the "objective" decision.

The "raters," have to be careful, incompetence defense did not work last time when the chieftain of the energy company, the graduate of the golden business school and even more golden consulting firm tried it. Who are these guys?, asked the Nobel laureate from Princeton, and I have to say I have to repeat this question. Who are these guys, who decide the rating of the US debt has to go down next week or month? What do they know, the rest of the 7 billion people do not know? The answer – they know less. The ability to pay interest on your debt has nothing to do with the amount of debt you carry, in spite of the teachings of the illustrious accounting schools around the world. The ability to pay interest and the debt back have everything to do with your earning power.

Those who commit the crime, will be brought to justice. Spreadsheets with numbers and metrics will not be sufficient justification, as ratings have nothing to do with the past. They will be asked questions by the court and if they play dead, this time around it will not be just a reduction in next year's bonus.