I think what MarkRyan is referring to is how they got the AAA ratings in the first place. That was indeed based on a model that only showed possible increases in housing prices - never declines.
grotsky little bitch
They were considered AAA because they fooled the ratings agencies io thinking these were sufficiently diversified, which is of course ridiculous. But then again the agencies were getting paid by the same people doing the fooling.
The banks even took all the lowest rated junk in the CDOs, pooled it together, and claimed it was a high quality security because it was diversified.
Yeah, there was obviously a huge amount of regulatory capture involved. I've heard a few different reasons for the AAA ratings - one being that they were only rated on the highest tranche of the security, the mortgage of the couple making 400k a year with an 800+ credit score, money that was practically guaranteed to come in month after month.
The simplest and most plausible reason is just that the ratings agencies are corrupt and beholden to the banks who pay them.
This x100 and also the fact that the people working at the ratings agencies are people who aren't able to get a job somewhere that pays them well.Originally Posted by dave is ok
Ratings really should be done by a regulated ratings board, not shitty private companies.
You sir, are a hideous hermaphroditical character which has neither the force and firmness of a man, nor the gentleness and sensibility of a woman.
You are so damn backwards. If you want them more corrupt and run by even less qualified people, let the government get hold of them. "Protect me, government! I can't take care of myself!"
Countdown to the de facto end of the console generation: 5 exclusives
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Next up: The Last of Us (6/11)
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grotsky little bitch
Yea, clearly the private sector is doing such a great job with it.
We tried your way. It doesn't work.
Yep, the ratings board has always been private and they're one of the major factors that caused the huge market crash from the subprime thing. Because they're not regulated they just suckle on the Wall Street tit and do whatever the big banks tell them to do.
You sir, are a hideous hermaphroditical character which has neither the force and firmness of a man, nor the gentleness and sensibility of a woman.
Deluxe Accoutrements
HOLY SHIT, he actually said something bad about Reagan on the air on Fox. That's just outright craziness.
That said, that is quite possibly the most honest piece of editorial from any source in the US in many many years.
Aside from that whole blah blah blah ron paul is great thing at the end.
Last edited by bbobb; 17 Feb 2012 at 08:20 PM.
You sir, are a hideous hermaphroditical character which has neither the force and firmness of a man, nor the gentleness and sensibility of a woman.
<3
Judge Nap is awesome. And just last week Fox canceled his show.
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