in the middle of the night

The ratings firms have created a new derivative of the old Wall Street phrase about “catching a falling knife”. Not quite able to catch it, they are chasing the knife down.

Ratings agency downgrades abound:

Hartford’s Capital Cushion Questioned

Moody’s Strips Berkshire of Top Rating

The Downside of Ratings Reform

The real problem for investors has been relying on the ratings in the first place instead of doing their own homework.

Capital is precious – investing should always be approached with fear and trepidation.