Dan Juran

New SEC Regulations Fail Miserably to Address the Real Issues

I do my homework and therefore I don't point fingers at others when things go wrong. The agencies have acknowledged that assumptions made in models used to rate complex mortgage backed securities proved wrong. Perhaps you don't make mistakes but I certainly do. There were many actors to the housing crisis. Many players made mistakes - including very experienced ones. Your narrative might be satisfying to you and certainly many others, but the dynamic was more complicated and less nefarious than you portray. But everyone runs with the simple story.


On 2008 Dec 17 01:21 AM MakersMark wrote:

> To Dan Juran: The ratings agencies fueled the entire housing crisis
> with their AAA ratings of junk. Get a clue. The SEC big shots get
> a kushy job as soon as they leave the agency. The big Wall Street
> firms have them in their pockets. Do your homework. Or perhaps you
> know this and are deflecting...
>

New SEC Regulations Fail Miserably to Address the Real Issues

Why are you constantly complaining about the supposed faults of the rating agencies? Why the aggrieved tone that dominates your coverage of them? I assume Seeking Alpha, given the fancy Greek word it references, presumes to cater to sophisticated money managers. Therefore, I would assume that the very same money managers consider ratings only one factor when selecting securities but also DO THEIR OWN HOMEWORK. Therefore, I would assume that your audience finds your casting of the ratings agencies as the villain and your audience as the victim tiresome if not insulting. Money managers who do their homework do not rely solely or even primarily on ratings but on their own judgment and therefore do not blame someone else for their own mistakes.