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These are the same guys who rated subprime mortgage backed bonds AAA. How the rating agencies still have any credibility is completely incomprehensible to me. I
by localhost3000 15y ago
These are the same guys who rated subprime mortgage backed bonds AAA. How the rating agencies still have any credibility is completely incomprehensible to me. I hope someone in the press has the wherewithal to make this point.
- mdda 15y agoSo are you saying that the US shouldn't have been AAA? Or that S&P should be regulated so that its hands are tied behind its back? While the {S&P, Moodys, Fitch} sub-prime department obviously got completely ahead of itself modelling-wise, the corporate and sovereign departments have a lot of credibility : partly because they haven't been trying to assign values to 'a whole new way of doing things (this time it's different, etc)'.
- Uchikoma 15y agoSo you think the US has had inflated ratings for years just like with subprimes? And should be even lower rated?