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How reliable are these ratings? In the aftermath of the subprime mortgage crisis we learned their algorithms can be easily beaten (repackaging dog shit securiti
by xyst 3y ago
How reliable are these ratings? In the aftermath of the subprime mortgage crisis we learned their algorithms can be easily beaten (repackaging dog shit securities) or just outright fraudulent.
- janalsncm 3y agoThe ‘07 crisis demonstrated that rating agencies tend to overrate securities, not that the agencies are useless. High bias, normal variance.