My little scheme for the rating agency works as follows: 1. create at least 5 rating agencies with roughly equal manpower 2. assigned randomly all proposals for rating to these five agencies 3. after a few years, the ones whose performance does not correlated with the market performance will gets smaller number of commissions and those whose prediction fits the market performance gets larger number of commissions. 4. when one rating agency is twice of the smallest agency, the larger one will be broken up into two agencies and each smaller children agency will get equal share of the original work assignment. 5. hopefully an equilibrium will be reached after a few iterations.

-- XinpingZhu - 09 Feb 2009