, 7 tweets, 1 min read Read on Twitter
On the behavior of auditors and credit rating companies:

You would've noticed frequent downgrades by credit raters and promptness displayed by auditors in qualifying financial statements and sometimes even refusing to sign them.

This is a sign of the times we are living in..
After a long a period of over-accommodative behavior by both auditors and rating companies, we are now seeing the pendulum swing the other way.

The frequency of downgrades will ACCELERATE not just because reality commands it, but also because the rating companies are shit scared
They are shit scared for the right reasons. The environment has changed. The media has become much more vigilant. And stories about accommodative behavior not only travels fast, it also attracts the attention of Regulators.
What will be the implications?

For a while, the pendulum will stay here. It will become increasingly difficult for companies to "shop" for a better credit rating. And there will be more honesty in accounting.
The companies that are perceived to be honest will command even higher premiums and the crooked ones will become increasingly untouchable. This is happening right now.
Then, after a few years, memories will fade and animal spirits will be back. And slowly the pendulum will swing the other way.
A new generation of crooks will emerge to part fools from their money. And they will be helped by over-accommodative rating companies and auditors.

And then there will be another crisis...
Missing some Tweet in this thread?
You can try to force a refresh.

Like this thread? Get email updates or save it to PDF!

Subscribe to Fundoo Professor
Profile picture

Get real-time email alerts when new unrolls are available from this author!

This content may be removed anytime!

Twitter may remove this content at anytime, convert it as a PDF, save and print for later use!

Try unrolling a thread yourself!

how to unroll video

1) Follow Thread Reader App on Twitter so you can easily mention us!

2) Go to a Twitter thread (series of Tweets by the same owner) and mention us with a keyword "unroll" @threadreaderapp unroll

You can practice here first or read more on our help page!

Follow Us on Twitter!

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just three indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3.00/month or $30.00/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!