tag:blogger.com,1999:blog-6616959642391988608.post1627039146733102278..comments2024-03-28T00:18:25.641-07:00Comments on Calafia Beach Pundit: Stocks could be cheaper now than in 1932Scott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-6616959642391988608.post-51733267738108982972008-10-12T19:08:00.000-07:002008-10-12T19:08:00.000-07:00The rating agencies do share a significant portion...The rating agencies do share a significant portion of the guilt burden here. In their defense, though, they were making reasonable assumptions at the time, namely that housing prices wouldn't collapse (but they did collapse). The things they rated AAA had a very low probability of suffering losses, but in the end they suffered much bigger losses than predicted. And as the agencies learned quicklyScott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-89665326692207206372008-10-12T18:58:00.000-07:002008-10-12T18:58:00.000-07:00Scott, I keep reading that the bond rating agencie...Scott, <BR/><BR/>I keep reading that the bond rating agencies didn't perform the way they should have in this financial crisis. They rated securities backed by mortgages with little or no payment and little income or credit verification too high. Financial institutions relied on these rating agencies (I assume this is Standard and Poors - Moody).<BR/><BR/>Also I have read that the FDIC engagesTory Conservativehttps://www.blogger.com/profile/10713535182753659510noreply@blogger.com