Rating agencies are in quest of speculation

Published 28.09.2016 23:34

Standard & Poor's, Fitch and Moody's... These U.S.-based institutions periodically issue long-term credit ratings to countries that silently direct foreign investors to countries with the lowest investment risk.

But in fact, it would be more accurate to say that these institutions manipulate investors under the pretext of arbitrary criteria such as "political vulnerability," self-contradicting reports and predictions that diverge from market realities, and are always failing.

For instance, after it announced last week that Turkey's market had recovered from the effects of the July 15 coup attempt, Moody'sdid a bait-and-switch Friday when it downgraded Turkey's credit rating.

Now questions such as, "What changed within three days?" and "Why did they announce the rating two months earlier than scheduled?" remain unanswered.

Of course we are aware of what is going on.

Such institutions endeavor to pressure Turkey into pursuing economic and political lines in accordance with the wishes and interests of the major world powers.

First, Moody's issued a positive statement about Turkey's investment sector, hinting that they would continue to show Turkey favor if it followed the path they wished. Subsequently, in a statement to Bloomberg, President Recep Tayyip Erdoğan said that Turkey "did not care about that." A disgruntled Moody's then downgraded Turkey's credit rating with disregard for its own corporate rules, announcing the rating two months ahead of schedule.

On the other hand, the institution also enlightens speculative investors, enabling some foreign investors to make major profits in a rising stock market based on the positive statement issued a few days ago.

Thus, in so doing, many investors have presumably expanded their wealth in just a matter of days.

If this is called "credit rating," I wonder what the fault of the robbers in jail is. Not hiding the "weapons" they have?

They ruined the worldThe activities of these institutions are not only shadowy in the context of Turkey.

They were responsible for the financial crash that happened in 2008. They deceived investors with deceptively high ratings. And for this reason, they paid fines totaling billions of dollars. Their story even inspired several movie plots.

Everyone knows that they deceived investors by giving bankrupt countries high ratings; namely, France, Italy, Greece, Portugal and Spain, for years.

So, does the economic progress of independent states depend on such institutions, which only serve the profit-making ambitions of global powers?

The answer is definitely "no."

As can be remembered, Moody's and Fitch upgraded Turkey's credit rating in 2013. After that, Turkey became an investable country for the first time in 18 years.

Then what happened? Turkey, whose economic indicators have always been positive since 2002 and its income per capita has reached its highest level, began to stagger. The dollar/lira exchange rate climbed to its peak.

Consequently, we have no tangible data to expect that Moody's latest negative statement will be in direct proportion to the mobility in the market.

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