Are we smarter than credit rating agencies? :Dorian Crede at TEDxVienna

/ tedxvienna
www.tedxvienna.at
Dorian Credé is founder and chairman of Wikirating, the first non-profit community platform for credit ratings. He studied physics and mathematics and has a Master of Science from the Swiss Federal Institute of Technology (ETH Zurich), Switzerland. Since more than 12 years he is working in the IT and financial services industry.
About TEDx
In the spirit of ideas worth spreading, TEDx is a program of local, self-organized events that bring people together to share a TED-like experience. At a TEDx event, TEDTalks video and live speakers combine to spark deep discussion and connection in a small group. These local, self-organized events are branded TEDx, where x = independently organized TED event. The TED Conference provides general guidance for the TEDx program, but individual TEDx events are self-organized.* (*Subject to certain rules and regulations)

[@mdjoffe1234]

This talk highlights an important problem with the world economy. If we don't have accurate credit ratings, interest rates won't reflect the true risk of debt instruments and society's scare capital will be misallocated. Dorian suggests applying mass collaboration techniques to the socially important task of analyzing sovereign and corporate credit. It is an idea worth considering.

[@jdeguest]

Awesome presentation! Great idea, reduce the error of few analysts working for companies who obviously have disturbing conflicts of interest, especially with clients requesting those ratings, and thus get a more balanced picture of what the market really think. This avoid the Rating Agency serving as a proxy for what the market believes are the creditworthiness of applicants. Better yet, this increase the possibility of unsollicited ratings to avoid, and even prevent financial issues.