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37. Re: Morning Legal Briefs Oct 30, 2012, 00:32 Wowbagger_TIP
 
Beamer wrote on Oct 29, 2012, 23:55:
Yeah, the rating companies made asses of themselves. Ignoring the fraud, everyone basically did what they were supposed to. They made bets. Terrible bets.

The rating companies saying they were safe bets despite not understanding them is pretty poor. Sure, traders also didn't understand them, but they thought they'd be good, and it wasn't their job to rate them, just make them, as trading is always betting.
I don't think the banks were so innocent as that even. They were actively trying to game the ratings.
http://www.nytimes.com/2010/04/24/business/24rating.html

Ultimately though, Congress made the laws that allowed this to happen (or they enabled it through deregulation like the CFMA). They turned over the reigns to the banks to essentially make their own rules. No wonder they're the only ones that come out on top after all is said and done.
 
Avatar 9540
 
"The whole problem with the world is that fools and fanatics are always so certain of themselves, but wiser people so full of doubts." -- Bertrand Russell (I think...)
 
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