No. of Recommendations: 2
ytm,

For the most part, my post was a counterpoint to one written by a person who calls himself "Locicious" and with whom I've gone round and round over the last decade about nearly everything having to do with bonds and fixed-income investing. If you read his post, he was using his favorite trick of "proof by assertion, rather than evidence", and he was dismissing the work of the rating-agencies as worthless, which is a huge irony, given that he freely admits he has never bought a corporate bond in his life.

So, the situation seemed to be this. A person who had no need to use a tool in his own investing was condemning the tool as useless for others. As a counterpoint, I argued that each person should decide for her or himself the usefulness of bond-ratings, and I'll stand by that claim. Each investor should use (and do) what makes sense to him or her with this caveat. Anyone stupid/greedy enough to accept bond-ratings on blind faith without the least bit of effort to verify them through independent credit-analysis deserves exactly the losses they will suffer.

Charlie
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