Australia proudly boasts an economy that is the envy of the world. One of only a handful of countries to be given a triple A rating from the three main ratings agencies. But here Bob Katter, (member for Kennedy), speaking in Parliament yesterday:
In this place we hear a lot about Moody’s and Standard & Poor’s. They do not run this country and their track record is absolutely appalling. I would urge Treasury officials, if they are sitting in the House here, to go and get out the three books on Enron. Standard & Poor’s and Moody’s and all the rest of them told us that Enron was a great, stable and wonderful company, just two months before Enron fell over, owing their shareholders and their creditors $64,000 million. They only made a little mistake—$64,000 million in one corporation.
What Mr Katter does it put a spotlight on the ratings agencies, if their judgement is so bad they either failed to see the collapse of Enron coming or saw it and ignore it, why do we so value their opinion of the Australian economy?