--- title: "Meaning & Key Takeaway of: The government can reasonably rely on…" description: "\"The government can reasonably rely on debt ratings when it forms programs to lend money to buyers of otherwise unattractive debt instruments.\" — Seth K..." image: "https://sms4smile.com/quotes/i/42e/seth-klarman-1979_buyers_the-government-can-reasonably-rely-on-de_1297666.png" --- # The government can reasonably rely on debt ratings when it… ![“The government can reasonably rely on debt ratings when it forms programs to lend money to buyers of otherwise unattractive debt instruments.” quote by Seth Klarman](https://sms4smile.com/quotes/i/42e/seth-klarman-1979_buyers_the-government-can-reasonably-rely-on-de_1297666.png) [Download](https://sms4smile.com/quotes/i/42e/seth-klarman-1979_buyers_the-government-can-reasonably-rely-on-de_1297666.png) [Open image](https://sms4smile.com/quotes/i/42e/seth-klarman-1979_buyers_the-government-can-reasonably-rely-on-de_1297666.png) > “The government can reasonably rely on debt ratings when it forms programs to lend money to buyers of otherwise unattractive debt instruments.” [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Investors can trust credit ratings as a practical guide when structuring loans for risky debt, though they must assess underlying risk. **In simple terms:** Ratings help structure risky debt loans. Key Takeaway Use ratings wisely, but verify risk. Themes finance risk management debt Mood analytical cautious Type financial educational When to use this quote - portfolio construction - credit analysis - policy making Key Concepts economics behavioral finance Questions to Reflect On - When might you distrust a rating? - How do you evaluate underlying risk? A Different Perspective Ratings can be misleading if not scrutinized. ★ ★ ★ ★ ★ No ratings yet [Buyers](https://sms4smile.com/quotes/about/buyers/) [Customer](https://sms4smile.com/quotes/about/customer/) [Debt](https://sms4smile.com/quotes/about/debt/) [Debt Instruments](https://sms4smile.com/quotes/about/debt-instruments-4249868/) [Debt Ratings](https://sms4smile.com/quotes/about/debt-ratings-1724359/) [Form](https://sms4smile.com/quotes/about/form/) [Government](https://sms4smile.com/quotes/about/government/) [Government Reasonably](https://sms4smile.com/quotes/about/government-reasonably-4249869/) [Instruments](https://sms4smile.com/quotes/about/instruments/) [Money](https://sms4smile.com/quotes/about/money/) [Politics](https://sms4smile.com/quotes/about/politics/) [Program](https://sms4smile.com/quotes/about/program/) [Programs Lend](https://sms4smile.com/quotes/about/programs-lend-4249867/) [Rating](https://sms4smile.com/quotes/about/rating/) [Rely](https://sms4smile.com/quotes/about/rely/) [Unattractive](https://sms4smile.com/quotes/about/unattractive/) [Unattractive Debt](https://sms4smile.com/quotes/about/unattractive-debt-4249866/) ## Related quotes > [Most companies can survive even if their debt ratings are lowered below investment grade, although they will have higher borrowing costs.](https://sms4smile.com/quotes/alex-berenson/most-companies-can-survive-even-if-their-debt-ratings-are-lowered/) [Alex Berenson](https://sms4smile.com/quotes/author/alex-berenson/) > [You must buy on the way down. There is far more volume on the way down than on the way back up, and far…](https://sms4smile.com/quotes/seth-klarman/you-must-buy-on-the-way-down-there-is-far-more-volume-on-the-way-down/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [My experience is that short sellers do far better analysis than long buyers because they have to. The market is biased upward over time-as…](https://sms4smile.com/quotes/seth-klarman/my-experience-is-that-short-sellers-do-far-better-analysis-than-long/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [If an asset has cash flow or the likelihood of cash flow in the near term and is not purely dependment on what a…](https://sms4smile.com/quotes/seth-klarman/if-an-asset-has-cash-flow-or-the-likelihood-of-cash-flow-in-the-near/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [It's always smart to know your market - what kind of buyers are looking in your neighborhood? What have other houses sold for in…](https://sms4smile.com/quotes/drew-scott/it-s-always-smart-to-know-your-market-what-kind-of-buyers-are-looking/) [Drew Scott](https://sms4smile.com/quotes/author/drew-scott/) > [A jury could very well conclude that this is a case of buyer's remorse.](https://sms4smile.com/quotes/ken-buck/a-jury-could-very-well-conclude-that-this-is-a-case-of-buyer-s-remorse/) [Ken Buck](https://sms4smile.com/quotes/author/ken-buck/) > [“But, learn that although all men are for sale, they don’t sell themselves to all buyers.”](https://sms4smile.com/quotes/samuel-shellabarger/but-learn-that-although-all-men-are-for-sale-they-don-t-sell/) [Samuel Shellabarger](https://sms4smile.com/quotes/author/samuel-shellabarger/) > [Being in Loyola College exposed me to other options and gave me confidence, apart from the freedom to bunk classes. I became a merchandiser…](https://sms4smile.com/quotes/suriya/being-in-loyola-college-exposed-me-to-other-options-and-gave-me/) [Suriya](https://sms4smile.com/quotes/author/suriya/) > [Grant me profits only, grant me the joy of profit made, and see to it that I enjoy cheating the buyer!](https://sms4smile.com/quotes/ovid/grant-me-profits-only-grant-me-the-joy-of-profit-made-and-see-to-it/) [Ovid](https://sms4smile.com/quotes/author/ovid/) > [Men's clothing is more pure in design. It's more simple and has no decoration. Women want that. When I started designing, I wanted to…](https://sms4smile.com/quotes/yohji-yamamoto/men-s-clothing-is-more-pure-in-design-it-s-more-simple-and-has-no/) [Yohji Yamamoto](https://sms4smile.com/quotes/author/yohji-yamamoto/) > [“the single biggest outcome of the Internet has been little understood: buyers are the winners.”](https://sms4smile.com/quotes/daniel-pecaut/the-single-biggest-outcome-of-the-internet-has-been-little-understood/) [Daniel Pecaut](https://sms4smile.com/quotes/author/daniel-pecaut/) > [Some ticket buyers think they don't like Jews.](https://sms4smile.com/quotes/jack-l-warner/some-ticket-buyers-think-they-don-t-like-jews/) [Jack L. Warner](https://sms4smile.com/quotes/author/jack-l-warner/) > [As part of our ongoing series of reports on the environment, 'America Goes Green,' we take on the question that can make otherwise competent…](https://sms4smile.com/quotes/brian-williams/as-part-of-our-ongoing-series-of-reports-on-the-environment-america/) [Brian Williams](https://sms4smile.com/quotes/author/brian-williams/) > [The most common cause of low prices is pessimism - some times pervasive, some times specific to a company or industry. We want to…](https://sms4smile.com/quotes/warren-buffett/the-most-common-cause-of-low-prices-is-pessimism-some-times-pervasive/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [I would like to see a lot more buyers and also a lot less bargaining by local buyers.](https://sms4smile.com/quotes/nandita-mahtani/i-would-like-to-see-a-lot-more-buyers-and-also-a-lot-less-bargaining/) [Nandita Mahtani](https://sms4smile.com/quotes/author/nandita-mahtani/) ## More by Seth Klarman > [Unlike return, however, risk is no more quantifiable at the end of an investment that it was at its beginning. Risk simply cannot be…](https://sms4smile.com/quotes/seth-klarman/unlike-return-however-risk-is-no-more-quantifiable-at-the-end-of-an/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [Because investors are not usually penalized for adhering to conventional practices, doing so is the less professionally risky strategy, even though it virtually guarantees…](https://sms4smile.com/quotes/seth-klarman/because-investors-are-not-usually-penalized-for-adhering-to/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [Value investing is risk aversion.](https://sms4smile.com/quotes/seth-klarman/value-investing-is-risk-aversion/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [Be focused on process and not outcome](https://sms4smile.com/quotes/seth-klarman/be-focused-on-process-and-not-outcome/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [There is an old saying, "How did you go bankrupt?" And the answer is, "Gradually, and then suddenly." The impending fiscal crisis in the…](https://sms4smile.com/quotes/seth-klarman/there-is-an-old-saying-how-did-you-go-bankrupt-and-the-answer-is/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [In a rising market, everyone makes money and a value philosophy is unnecessary. But because there is no certain way to predict what the…](https://sms4smile.com/quotes/seth-klarman/in-a-rising-market-everyone-makes-money-and-a-value-philosophy-is/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [Ultimately, nothing should be more important to investors than the ability to sleep soundly at night.](https://sms4smile.com/quotes/seth-klarman/ultimately-nothing-should-be-more-important-to-investors-than-the/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [The best protection against risk is knowing what you are doing.](https://sms4smile.com/quotes/seth-klarman/the-best-protection-against-risk-is-knowing-what-you-are-doing/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [Warren Buffett once wrote that value investing is like an inoculation--it either takes or it doesn't--and when you explain to somebody what it is…](https://sms4smile.com/quotes/seth-klarman/warren-buffett-once-wrote-that-value-investing-is-like-an-inoculation/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [It is important to remember that value investing is not a perfect science. It is an, with an ongoing need for judgment, refinement, patience,…](https://sms4smile.com/quotes/seth-klarman/it-is-important-to-remember-that-value-investing-is-not-a-perfect/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [Value investing is at its core the marriage of a contrarian streak and a calculator.](https://sms4smile.com/quotes/seth-klarman/value-investing-is-at-its-core-the-marriage-of-a-contrarian-streak/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [The avoidance of loss is the surest way to ensure a profitable outcome.](https://sms4smile.com/quotes/seth-klarman/the-avoidance-of-loss-is-the-surest-way-to-ensure-a-profitable-outcome/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [Do not suffer interim losses, relish and appreciate them](https://sms4smile.com/quotes/seth-klarman/do-not-suffer-interim-losses-relish-and-appreciate-them/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [Ratings agencies are highly conflicted, unimaginative dupes. They are blissfully unaware of adverse selection and moral hazard. Investors should never trust them.](https://sms4smile.com/quotes/seth-klarman/ratings-agencies-are-highly-conflicted-unimaginative-dupes-they-are/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [It is crucial to have a strategy in place before problems hit, precisely because no one can accurately predict the future direction of the…](https://sms4smile.com/quotes/seth-klarman/it-is-crucial-to-have-a-strategy-in-place-before-problems-hit/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) [Explore all 193 Seth Klarman quotes ](https://sms4smile.com/quotes/author/seth-klarman/) ## More Buyers quotes > [I would like to see a lot more buyers and also a lot less bargaining by local buyers.](https://sms4smile.com/quotes/nandita-mahtani/i-would-like-to-see-a-lot-more-buyers-and-also-a-lot-less-bargaining/) [Nandita Mahtani](https://sms4smile.com/quotes/author/nandita-mahtani/) > [The most common cause of low prices is pessimism - some times pervasive, some times specific to a company or industry. We want to…](https://sms4smile.com/quotes/warren-buffett/the-most-common-cause-of-low-prices-is-pessimism-some-times-pervasive/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [As part of our ongoing series of reports on the environment, 'America Goes Green,' we take on the question that can make otherwise competent…](https://sms4smile.com/quotes/brian-williams/as-part-of-our-ongoing-series-of-reports-on-the-environment-america/) [Brian Williams](https://sms4smile.com/quotes/author/brian-williams/) > [Some ticket buyers think they don't like Jews.](https://sms4smile.com/quotes/jack-l-warner/some-ticket-buyers-think-they-don-t-like-jews/) [Jack L. Warner](https://sms4smile.com/quotes/author/jack-l-warner/) > [“the single biggest outcome of the Internet has been little understood: buyers are the winners.”](https://sms4smile.com/quotes/daniel-pecaut/the-single-biggest-outcome-of-the-internet-has-been-little-understood/) [Daniel Pecaut](https://sms4smile.com/quotes/author/daniel-pecaut/) > [Men's clothing is more pure in design. It's more simple and has no decoration. Women want that. When I started designing, I wanted to…](https://sms4smile.com/quotes/yohji-yamamoto/men-s-clothing-is-more-pure-in-design-it-s-more-simple-and-has-no/) [Yohji Yamamoto](https://sms4smile.com/quotes/author/yohji-yamamoto/) > [Grant me profits only, grant me the joy of profit made, and see to it that I enjoy cheating the buyer!](https://sms4smile.com/quotes/ovid/grant-me-profits-only-grant-me-the-joy-of-profit-made-and-see-to-it/) [Ovid](https://sms4smile.com/quotes/author/ovid/) > [Being in Loyola College exposed me to other options and gave me confidence, apart from the freedom to bunk classes. I became a merchandiser…](https://sms4smile.com/quotes/suriya/being-in-loyola-college-exposed-me-to-other-options-and-gave-me/) [Suriya](https://sms4smile.com/quotes/author/suriya/) > [“But, learn that although all men are for sale, they don’t sell themselves to all buyers.”](https://sms4smile.com/quotes/samuel-shellabarger/but-learn-that-although-all-men-are-for-sale-they-don-t-sell/) [Samuel Shellabarger](https://sms4smile.com/quotes/author/samuel-shellabarger/) > [A jury could very well conclude that this is a case of buyer's remorse.](https://sms4smile.com/quotes/ken-buck/a-jury-could-very-well-conclude-that-this-is-a-case-of-buyer-s-remorse/) [Ken Buck](https://sms4smile.com/quotes/author/ken-buck/) > [It's always smart to know your market - what kind of buyers are looking in your neighborhood? What have other houses sold for in…](https://sms4smile.com/quotes/drew-scott/it-s-always-smart-to-know-your-market-what-kind-of-buyers-are-looking/) [Drew Scott](https://sms4smile.com/quotes/author/drew-scott/) > [And old Dave, he'd go up to his room, y'understand, put on his green velvet slippers - I'll never forget - and pick up…](https://sms4smile.com/quotes/arthur-miller/and-old-dave-he-d-go-up-to-his-room-y-understand-put-on-his-green/) [Arthur Miller](https://sms4smile.com/quotes/author/arthur-miller/) > [During the early 1960s, I decided to supplement research support for quantitative economic studies at Pennsylvania by selling econometric forecasts to private and public…](https://sms4smile.com/quotes/anonymous/during-the-early-1960s-i-decided-to-supplement-research-support-for/) [Anonymous](https://sms4smile.com/quotes/author/anonymous/) > [Smart art galleries know it's not the words on paper but the emotion in the piece that makes clients pull out the credit card…](https://sms4smile.com/quotes/jack-white/smart-art-galleries-know-it-s-not-the-words-on-paper-but-the-emotion/) [Jack White](https://sms4smile.com/quotes/author/jack-white/) > [There's more student debt than credit card debt! Everywhere I go, I run into young people trying to build careers while they keep shelling…](https://sms4smile.com/quotes/gail-collins/there-s-more-student-debt-than-credit-card-debt-everywhere-i-go-i-run/) [Gail Collins](https://sms4smile.com/quotes/author/gail-collins/) [Browse all 202 Buyers quotes ](https://sms4smile.com/quotes/about/buyers/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "The government can reasonably rely on debt ratings when it forms programs to lend money to buyers of otherwise unattractive debt instruments.", "creator": { "@type": "Person", "name": "Seth Klarman" }, "isPartOf": { "@id": "https://sms4smile.com/quotes/#website" }, "url": "https://sms4smile.com/quotes/seth-klarman/the-government-can-reasonably-rely-on-debt-ratings-when-it-forms/", "about": { "@type": "Thing", "name": "Buyers" }, "@id": "https://sms4smile.com/quotes/seth-klarman/the-government-can-reasonably-rely-on-debt-ratings-when-it-forms/#quotation", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/42e/seth-klarman-1979_buyers_the-government-can-reasonably-rely-on-de_1297666.png", "contentUrl": "https://sms4smile.com/quotes/i/42e/seth-klarman-1979_buyers_the-government-can-reasonably-rely-on-de_1297666.png", "url": "https://sms4smile.com/quotes/i/42e/seth-klarman-1979_buyers_the-government-can-reasonably-rely-on-de_1297666.png", "width": 1080, "height": 1080, "caption": "“The government can reasonably rely on debt ratings when it forms programs to lend money to buyers of…” — Seth Klarman", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } }, { "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://sms4smile.com/" }, { "@type": "ListItem", "position": 2, "name": "Quotes", "item": "https://sms4smile.com/quotes/" }, { "@type": "ListItem", "position": 3, "name": "Seth Klarman", "item": "https://sms4smile.com/quotes/author/seth-klarman/" }, { "@type": "ListItem", "position": 4, "name": "The government can reasonably rely on...", "item": "https://sms4smile.com/quotes/seth-klarman/the-government-can-reasonably-rely-on-debt-ratings-when-it-forms/" } ], "@id": "https://sms4smile.com/quotes/seth-klarman/the-government-can-reasonably-rely-on-debt-ratings-when-it-forms/#breadcrumb" }, { "@type": "WebSite", "@id": "https://sms4smile.com/quotes/#website", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "publisher": { "@id": "https://sms4smile.com/quotes/#organization" } }, { "@type": "Organization", "@id": "https://sms4smile.com/quotes/#organization", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "logo": { "@type": "ImageObject", "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png", "width": 512, "height": 512 } } ] } ```