TW: Hindsight is such a great view. Folks can see the quotes below and ask how could such things possibly happen. I assure you such things have been happening for a long time (think Enron, Internet bubble, S&L crisis etc.). Do you think the officials mentioned below only shared such thoughts amidst themselves and not say their buddies at the club or the bar or wherever. This stuff is in front of us all the time which is why our society must officially and otherwise question authority, push back on the status quos and never assume anything. Investing ultimately is merely the continuation of a perpetual battle between fear and greed. In hindsight the unbridled greed seems obvious, perhaps unmitgated fear is upon us now.
In a hearing...before the House Oversight Committee, the credit rating agencies are being portrayed as profit-hungry institutions that would give any deal their blessing for the right price.Case in point: this instant message exchange between two unidentified Standard & Poor's officials about a mortgage-backed security deal on 4/5/2007:
Official #1: Btw (by the way) that deal is ridiculous.
Official #2: I know right...model def (definitely) does not capture half the risk.
Official #1: We should not be rating it.
Official #2: We rate every deal. It could be structured by cows and we would rate it.
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