Home › Forums › Financial Markets/Economics › In hindsight, who is most to blame for the Financial Crisis?
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briansd1.
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April 14, 2010 at 3:37 PM #540028April 14, 2010 at 3:46 PM #539092
UCGal
ParticipantOne more place to blame…
The ratings agencies. Moody’s, S&P, et al. If they’d recognized that crappy mortgages bundled into derivatives created CRAPPY investments, not AAA rated investments, a lot of the housing bubble could have been avoided.
The derivatives market drove the housing bubble – cheap easy money drove prices up.April 14, 2010 at 3:46 PM #539213ParticipantOne more place to blame…
The ratings agencies. Moody’s, S&P, et al. If they’d recognized that crappy mortgages bundled into derivatives created CRAPPY investments, not AAA rated investments, a lot of the housing bubble could have been avoided.
The derivatives market drove the housing bubble – cheap easy money drove prices up.April 14, 2010 at 3:46 PM #539680ParticipantOne more place to blame…
The ratings agencies. Moody’s, S&P, et al. If they’d recognized that crappy mortgages bundled into derivatives created CRAPPY investments, not AAA rated investments, a lot of the housing bubble could have been avoided.
The derivatives market drove the housing bubble – cheap easy money drove prices up.April 14, 2010 at 3:46 PM #539774ParticipantOne more place to blame…
The ratings agencies. Moody’s, S&P, et al. If they’d recognized that crappy mortgages bundled into derivatives created CRAPPY investments, not AAA rated investments, a lot of the housing bubble could have been avoided.
The derivatives market drove the housing bubble – cheap easy money drove prices up.April 14, 2010 at 3:46 PM #540043ParticipantOne more place to blame…
The ratings agencies. Moody’s, S&P, et al. If they’d recognized that crappy mortgages bundled into derivatives created CRAPPY investments, not AAA rated investments, a lot of the housing bubble could have been avoided.
The derivatives market drove the housing bubble – cheap easy money drove prices up.April 14, 2010 at 3:46 PM #539097ParticipantOops – SDDuuude beat me to it.
April 14, 2010 at 3:46 PM #539218ParticipantOops – SDDuuude beat me to it.
April 14, 2010 at 3:46 PM #539685ParticipantOops – SDDuuude beat me to it.
April 14, 2010 at 3:46 PM #539778ParticipantOops – SDDuuude beat me to it.
April 14, 2010 at 3:46 PM #540048ParticipantOops – SDDuuude beat me to it.
April 14, 2010 at 3:47 PM #539087sdduuuude
ParticipantFederal Reserve in combination with the ratings agencies.
One provided cheap capital.
The other convinced banks to lend more than they would have otherwise lent by convincing them that MBS were quality when they, simply, weren’t.
If ratings agencies were held accountable for their bad ratings, they would all be in jail. If they were financially accountable, they would all be bankrupt. They are neither.
To some extent, those who were dumb enough to believe the ratings agencies have a hand in it as well. Why believe what someone is telling you if there is no downside for them if they are wrong ? Why even ask in the first place?
April 14, 2010 at 3:47 PM #539208ParticipantFederal Reserve in combination with the ratings agencies.
One provided cheap capital.
The other convinced banks to lend more than they would have otherwise lent by convincing them that MBS were quality when they, simply, weren’t.
If ratings agencies were held accountable for their bad ratings, they would all be in jail. If they were financially accountable, they would all be bankrupt. They are neither.
To some extent, those who were dumb enough to believe the ratings agencies have a hand in it as well. Why believe what someone is telling you if there is no downside for them if they are wrong ? Why even ask in the first place?
April 14, 2010 at 3:47 PM #539675ParticipantFederal Reserve in combination with the ratings agencies.
One provided cheap capital.
The other convinced banks to lend more than they would have otherwise lent by convincing them that MBS were quality when they, simply, weren’t.
If ratings agencies were held accountable for their bad ratings, they would all be in jail. If they were financially accountable, they would all be bankrupt. They are neither.
To some extent, those who were dumb enough to believe the ratings agencies have a hand in it as well. Why believe what someone is telling you if there is no downside for them if they are wrong ? Why even ask in the first place?
April 14, 2010 at 3:47 PM #539769ParticipantFederal Reserve in combination with the ratings agencies.
One provided cheap capital.
The other convinced banks to lend more than they would have otherwise lent by convincing them that MBS were quality when they, simply, weren’t.
If ratings agencies were held accountable for their bad ratings, they would all be in jail. If they were financially accountable, they would all be bankrupt. They are neither.
To some extent, those who were dumb enough to believe the ratings agencies have a hand in it as well. Why believe what someone is telling you if there is no downside for them if they are wrong ? Why even ask in the first place?
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