Comments on: Quis custodiet ipsos custodes? Bridges, budgets, bonds Mon, 24 Nov 2014 00:29:08 +0000 hourly 1 By: Cate_Long Tue, 16 Aug 2011 11:45:35 +0000 I’ve been kind of obsessed lately with the “big three” ratings agencies S&P, Moody’s, and Fitch. I have two posts (this one and that one) where I discuss the idea of setting up open source ratings models to provide competition to them and hopefully force them to increase transparency (speaking of transparency, here’s an article which describes how well they cope with one of the transparency rules they already have). robabilities-and-recovery-rates/

By: breezinthru Thu, 07 Jul 2011 08:13:33 +0000 I have been watching the watchers for several years. At this point, focusing on minutia is a digression from obvious truth. Adversus solem ne loquitor.

The mortgage profiteering and subsequent financial collapse of 2007/2008 could only have happened if ratings agencies blessed faulty financial instruments created by blending low risk mortgages with high risk mortgages.

Any fool can see that such a blend could not possibly be worthy of the same rating bestowed upon groupings of exclusively low risk mortgages. The rating agencies are in flagrante delicto.

Sine poena nulla lex!