Moody\'s: Simply Irresponsible, (mbi, abk related)

longtermInvestor (2008-10-14 20:46:45) 评论 (0)
Moody's irresponsible

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Chart 5 shows what would have to have to happen to the 2006 performingsubprime mortgage loans to get to a 30% loss, even with assumedseverity bumped up to 65%. You read that right: Over 100% of the currently performing loans would have to default.

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This is what Martin Whiteman called "arbitrary" judgment of rating agencies. Sadly, we have to cope with a imperfect world.