Quote:
Originally Posted by roachboy
this is a systemic matter to my mind.
at the center of this farce were the ratings agencies. without moody's or standard and poor rating these devices as A or above the trade would not have been possible in anything like the way it was. and it's obvious from all research so far that no-one, including the people are these agencies, actually knew what the devices were that they were rating or buying or selling. and it didn't matter: velocity was the friend of every trading house.
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It does seem almost criminal doesn't it? I remember reading a while back that some of the people working at the rating agencies wanted to evaluate the underlying mortgages (tape) but were instructed by their bosses to just assume that all was in order and rate accordingly. Apparently there is a lot of pressure to rate high. I guess I don't understand how these rating agencies work; I use to think they were controlled by the government.