Thee's definitely some truth to that. And debt issuers are paying for their own ratings. I think, though, that perception of risk is highly distorted by bubbl

Thee's definitely some truth to that. And debt issuers are paying for their own ratings. I think, though, that perception of risk is highly distorted by bubbles. Its the success of risk takers that's convincing everyone else to buy and join them in taking even greater, but misperceived risks. But the rating agencies still give all different kinds of debt different ratings. Not every bond is getting rated AAA. Plenty get a junk rating as well. And with government and quasi-government Fannie and Freddie encouraging unreasonable lending and hiding risk through repackaging, it doesn't surprise me risk was hidden even from these agencies. But I don't know if misperception of risk is quite the same problem as regulators being influenced to ignore questionable practices.