Wise words on Moody’s from a wise Professor Joel Stern

By Alec Hogg 

Few business personalities have been interviewable (is that even a word?) for all the time I've been a journalist. New Yorker Joel Stern, creator of the globally widespread EVA performance measure, is one. A regular visitor to SA since 1978, I've had the privilege of interviewing him on numerous occasions here and in his native Manhattan. He has never disappointed.

Although he likes to use his Professor prefix nowadays, there's nothing academic about him. Joel remains a brutally honest external observer of a country that can do with a few more. In our CNBC Africa interview yesterday, he stopped me complaining about the string of "unnecessary" downgrades by ratings agency Moody's. No, says Stern. See it as a blessing. There is much wrong in the economic structure in the country (OK, labour inflexibility, unemployment, poor productivity, misguided policies…..) and Moody's is brave enough to point this out. Take heed and address it before things turn really nasty. And for heaven's sake, don't shoot the messenger.

Wise words from a wise man.

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Prof Joel Stern: Moody's downgrade wake-up call to all SA banks

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