Msrpaul

Ambac, MBIA Are Still Shorts Amidst This Wink-and-Nod

Cheating always comes back to haunt you. The gimmicks can cvontinue, in the desparate effort to forestall the inevitable, in the hopes the trainwreck can be stopped. But the wreck will happen, and worse, sadly worse, is that AAA credibility itself becoming an untrustworthy title. Your credit, like your reputation, takes years to earn, and can be blown in a fortnight. Moodys & S&P are digging their own graves by maintaining the AAA farce, and that is a greater tragedy. When it blows up, and the bodies are scattered, Congress will come in and rightly regulate the greed that was supposed to be regulated by regs established years ago to prevent this kind of mess from happening, of course, the shadow banking system bypassed it all. Moral of the story. When you put all of the parties of the loan on the same side of the table, then bad loans will be written. Always have, always will. The customer lied, the "lender" lied, the underwriters lied, the brokers lied, and in the end, the investor got screwed. Now the liars want to be let off the hook.

Moodys, S&P should be hung.