Mary Droppins

Moody's Is Acting on Private Mortgage Insurers

www.forbes.com/afxnews...

This is old news from 6/26/08.

MBIA Sues Countrywide: Part of the Solution to Clean Up the Lies

Do not forget about the gross misjudgment perpetrated by the rating agencies. Their models were miscalibrated in many respects and it turns out have overstated the quality of the bonds they initially rated. Everyone in these deals relied upon their projections of payoffs/defaults/loss recovery to structure and price bonds.

They were wrong in many instances and are seemingly not feeling any heat for their mistakes. Now they appear to have swung the other way to save face and our probably getting too negative. And yet the market still hangs on the word of these soothsayers as gospel.