Felix Salmon

Will S&P downgrade the US?

April 18, 2011

It’s known as Stein’s Law: if something can’t go on forever, it won’t. And it’s the reason S&P has now revised its outlook on the US sovereign credit rating:

FICO’s new businesses

February 20, 2010

The FICO people invited me to a press dinner on Thursday evening, where I learned quite a bit about their credit-scoring system — including the fact that the “free” credit score being sleazily shilled by Ben Stein is not actually a FICO score at all, and therefore even more useless than I’d thought. I also learned about their new Credit Capacity Index — a pretty useful tool, I think, which tells banks not how likely someone is to default on their present debt load, but rather how likely they are to default if you extend even more credit to them.