Reddenbacher

Rating Agencies Take Due Fire

PURE UNADULTERATED NONSENSE. Thanks to JoePlumber for pointing out Marco was fired by S&P. Ratings agencies had an unparralled record of performance and excellence (you can look it up) prior to the unprecedented implosion of subprime MBS, which anyone who foresaw defaults greater than 13-14%, which rating models assumed. was pretarnatualy prescient. Blame lies in GREED, spread from GREEDY INVESTORS AROUND THE WRLD AND OF ALL KINDS needing that extra spread, GREEDY I-BANKS needing those extra fees and then stupid enough to make CDS side bets and take back some of their own subprime issuance. GREED of the small and mid size banks and mortgage specialty banks who thought they find a way around risk and not have to work to KNOW THOSE TO WHOM THEY LENT. GREED of the useless and predatory MORTGAGE BROKERS WHO LIED to people about what to expect. GREED OF the people who ignored their guts and common sense in thinking they could get something (a House) for nothing (or at least no money down, no income verification.) And yes , GREED of the RATING AGENCIES WHO failed to blow the whistle soon enough when they first saw lending standards crash.

BTW - Only 1 of the Big 5 Auditors went away - the other four got fatter and happier off Sarbanes-Oxley and the death of Arthur Andersen.