As for the current financial meltdown, there is more than enough blame to go around. There is no doubt that Fannie and Freddie Mac contributed to the problem by a lowering of standards, and that the Investment Bankers on Wall Street created the mess. But there is one fact about this which I think is a "smoking gun".
This failure is marked with something that I understand has never happened before. For the first time in history, bonds rated AAA defaulted while they were rated AAA. So the ratings agencies, who supposedly filter this stuff so we, the banks and others know what we are buying, either turned a blind eye, fell asleep at the switch, or were grossly incompetent. Or maybe all three!
These agencies should be fined and the executives who ran them, driven to the poor house!
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment