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Who will be Discredited When Venezuela Doesn’t Default? Nobody.


In this article, Bloomberg (Ye Xie, Katia Porzecanski and Pietro D. Pitts) wonder who will seize Venezuelan assets if the government defaults.

A better question would be “How will Bloomberg’s reporting change when Venezuela doesn’t default?”

The global economic meltdown that took place a few years ago, and from which we are still recovering, answered for us. The reporting won’t change at all.

Being an elite investor, big credit rating agency or highly regarded economist means never having to say you’re sorry. It is quite a prestigious group that couldn’t see (or wouldn’t admit to seeing) gargantuan housing bubbles in the USA and elsewhere that led to worst global economic recession since WWII. The big credit rating agencies gave mortgage backed securities the highest possible ratings just before they blew up. The Federal Reserve of Boston put out a paper exploring why the vast majority of the professional economists proved as useless as “the markets”.

We must add to the list of the “never-accountable-for-anything” corporate news agencies like Bloomberg who hype the “concerns” of all these people. The appalling track record is always a non-issue.

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