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Moody's also says that bundles of subprime mortgages are a AA+ investment.
by theprop 9y ago
Moody's also says that bundles of subprime mortgages are a AA+ investment.
- justicezyx 9y agoFollowing that reasoning, that probably means China's economy situation would be much worse.
- ProfessorLayton 9y agoI believe the OP is putting the agency's credibility into question, which I think is valid, considering their role in the financial crisis. https://en.wikipedia.org/wiki/Credit_rating_agencies_and_the_subprime_crisis https://en.wikipedia.org/wiki/Credit_rating_agencies_and_the...
- adrenalinelol 9y agoThere was a financial incentive to look the other way. That doesn't exist in this case.
- r00fus 9y agoThey failed their mission to instead chase profits to the detriment of the public. What's to say they don't have a financial incentive here?
- dna_polymerase 9y agoHave a look at "The Big Short" (the book, not the movie). Reading how clueless those idiots at those Rating Agencys were is fascinating. The had no idea, basically just rating every pile of horseshit AAA because they are dumb and have no idea what they are doing.
- StavrosK 9y agoThe movie was fantastic too, though.
- mistermann 9y agoGood point. If you think about it, where does Moody's, which at the end of the day is just a bunch of individual bureaucrats, many of which are likely writing the story they are told to write, get the idea that they have the expertise to second guess the architects of the largest, most complex (financially, culturally, psychologically, etc, etc, etc) transformation the world has ever witnessed? Sorry, but until I see strong evidence to suggest otherwise, I'm going to assume the Chinese government knows better of how to grow an economy than its international critics.