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The Big Short makes the accusation that the ratings agencies took an insane amount of time between the discovery of the nature of the catastrophe, and their act
by RodericDay 10y ago
The Big Short makes the accusation that the ratings agencies took an insane amount of time between the discovery of the nature of the catastrophe, and their actual ratings adjustment.
More specifically, it suggests that corruption was used to buy the banks holding bad loans time to discharge them as fast as they could to protect themselves.
- hueving 10y agoNot quite. The particular delay you are referring to in the movie was banks not correctly repricing illiquid assets when it would hurt their own position. The accusation against the ratings agencies was arguably worse, it was that they wouldn't give bad ratings because the banks would go to a different agency.
- RodericDay 10y agoI watched the movie and read the book, this is a very poor deflection.
- hueving 10y agoWhat deflection are you talking about? I just pointed out that the movie did not emphasize the ratings agency delay at all. Your comment was incorrect.
- deleted 10y ago[deleted]