Comments on: Greenspan: Blame the Rating Agencies http://www.ritholtz.com/blog/2009/02/greenspan-blame-the-rating-agencies/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Tue, 14 Feb 2012 21:38:31 +0000 hourly 1 http://wordpress.org/?v=3.0.5 By: batmando http://www.ritholtz.com/blog/2009/02/greenspan-blame-the-rating-agencies/comment-page-1/#comment-145697 batmando Fri, 13 Feb 2009 15:20:15 +0000 http://www.ritholtz.com/blog/?p=18980#comment-145697 @ lb "As this bear market has progressed I have become more inclined towards commodities, " and in that regard, soliciting opinions on vehicles for long on oil...??? especially usl vs. uso @ lb
“As this bear market has progressed I have become more inclined towards commodities, ”

and in that regard, soliciting opinions on vehicles for long on oil…???

especially usl vs. uso

]]> By: crack http://www.ritholtz.com/blog/2009/02/greenspan-blame-the-rating-agencies/comment-page-1/#comment-145660 crack Fri, 13 Feb 2009 14:01:19 +0000 http://www.ritholtz.com/blog/?p=18980#comment-145660 "It is terrible to so discuss this subject without dealing with the cause of their failure. Gov’t regulation requires them to be paid by the wrong people, the SELLERS OF THE DEBT!, instead of the purchasers of the debt. We do not have a free market & we are suffering for it." This is ridiculous. No government regulation prohibited people from paying for a buy side appraisal. Why did the market fail to produce a buy side ratings agency? It is so annoying to hear people blame the government for horrible horrible market failures. Read my first comment. “It is terrible to so discuss this subject without dealing with the cause of their failure. Gov’t regulation requires them to be paid by the wrong people, the SELLERS OF THE DEBT!, instead of the purchasers of the debt. We do not have a free market & we are suffering for it.”

This is ridiculous. No government regulation prohibited people from paying for a buy side appraisal. Why did the market fail to produce a buy side ratings agency? It is so annoying to hear people blame the government for horrible horrible market failures. Read my first comment.

]]> By: The Woodsman http://www.ritholtz.com/blog/2009/02/greenspan-blame-the-rating-agencies/comment-page-1/#comment-145644 The Woodsman Fri, 13 Feb 2009 10:18:17 +0000 http://www.ritholtz.com/blog/?p=18980#comment-145644 We used to have debtors prisons, well so to speak, they were know as poor farms here in New England. If you could not pay your obligations, you were sent there. Some times you were lucky and someone in town liked you and paid your debt, this kept you from being dragged off to the poor farm. Now we have the government, those who were fiscally irresponsible are bailed out by the taxpayer. Those that were always current on there debt or have none get the bill. Game Over! We used to have debtors prisons, well so to speak, they were know as poor farms here in New England. If you could not pay your obligations, you were sent there. Some times you were lucky and someone in town liked you and paid your debt, this kept you from being dragged off to the poor farm. Now we have the government, those who were fiscally irresponsible are bailed out by the taxpayer. Those that were always current on there debt or have none get the bill. Game Over!

]]> By: algernon http://www.ritholtz.com/blog/2009/02/greenspan-blame-the-rating-agencies/comment-page-1/#comment-145629 algernon Fri, 13 Feb 2009 03:21:41 +0000 http://www.ritholtz.com/blog/?p=18980#comment-145629 It is terrible to so discuss this subject without dealing with the cause of their failure. Gov't regulation requires them to be paid by the wrong people, the SELLERS OF THE DEBT!, instead of the purchasers of the debt. We do not have a free market & we are suffering for it. It is terrible to so discuss this subject without dealing with the cause of their failure. Gov’t regulation requires them to be paid by the wrong people, the SELLERS OF THE DEBT!, instead of the purchasers of the debt. We do not have a free market & we are suffering for it.

]]> By: Mannwich http://www.ritholtz.com/blog/2009/02/greenspan-blame-the-rating-agencies/comment-page-1/#comment-145616 Mannwich Fri, 13 Feb 2009 01:53:01 +0000 http://www.ritholtz.com/blog/?p=18980#comment-145616 I just read the same article, Grindstone. If we had that here, nearly half the population would be in prison. I just read the same article, Grindstone. If we had that here, nearly half the population would be in prison.

]]> By: Grindstone Financial http://www.ritholtz.com/blog/2009/02/greenspan-blame-the-rating-agencies/comment-page-1/#comment-145613 Grindstone Financial Fri, 13 Feb 2009 01:36:09 +0000 http://www.ritholtz.com/blog/?p=18980#comment-145613 I was struck by this quote in the NY Times article on the collapse in Dubai.... "Now, like many of the foreign workers who make up 90 percent of the population here, she has been laid off and faces the prospect of being forced to leave this Persian Gulf city — or worse. “I’m really scared of what could happen, because I bought property here,” said Sofia, who asked that her last name be withheld because she is still hunting for a new job. “If I can’t pay it off, I was told I could end up in debtors’ prison.” Debtors prison - what a quaint idea. link to the article - http://www.nytimes.com/2009/02/12/world/middleeast/12dubai.html?em I was struck by this quote in the NY Times article on the collapse in Dubai….

“Now, like many of the foreign workers who make up 90 percent of the population here, she has been laid off and faces the prospect of being forced to leave this Persian Gulf city — or worse.

“I’m really scared of what could happen, because I bought property here,” said Sofia, who asked that her last name be withheld because she is still hunting for a new job. “If I can’t pay it off, I was told I could end up in debtors’ prison.”

Debtors prison – what a quaint idea.

link to the article –
http://www.nytimes.com/2009/02/12/world/middleeast/12dubai.html?em

]]> By: JohnDoe http://www.ritholtz.com/blog/2009/02/greenspan-blame-the-rating-agencies/comment-page-1/#comment-145611 JohnDoe Fri, 13 Feb 2009 01:29:24 +0000 http://www.ritholtz.com/blog/?p=18980#comment-145611 Financial advisers always talk about diversification in investing. Well the blame game is no different, you need to diversify! Here is my recommendation for general blame allocation: - 20% Alan Greenspan for keeping rates so low for so long -20% Rating agencies for thinking a handful of junk equals high quality -20% Lenders for handing out loans to anybody with a pulse -20% Borrowers for thinking they could take on more than they could handle and outright lying -20% The media for convincing everyone that they need to buy a home and there is something wrong with renting. - Financial advisers always talk about diversification in investing. Well the blame game is no different, you need to diversify! Here is my recommendation for general blame allocation:

- 20% Alan Greenspan for keeping rates so low for so long

-20% Rating agencies for thinking a handful of junk equals high quality

-20% Lenders for handing out loans to anybody with a pulse

-20% Borrowers for thinking they could take on more than they could handle and outright lying

-20% The media for convincing everyone that they need to buy a home and there is something wrong with renting.

-

]]> By: 1001 http://www.ritholtz.com/blog/2009/02/greenspan-blame-the-rating-agencies/comment-page-1/#comment-145610 1001 Fri, 13 Feb 2009 01:06:16 +0000 http://www.ritholtz.com/blog/?p=18980#comment-145610 When does someone go after the people who borrowed $$$ with no down payment , refinanced and took $50-100,000 out , only to walk away from their homes. The lack of outrage toward these people is a joke . Picking on Easy Al ...... is too easy spare us the false outrage already When does someone go after the people who borrowed $$$ with no down payment , refinanced and took $50-100,000 out , only to walk away from their homes.

The lack of outrage toward these people is a joke .

Picking on Easy Al …… is too easy

spare us the false outrage already

]]> By: Mannwich http://www.ritholtz.com/blog/2009/02/greenspan-blame-the-rating-agencies/comment-page-1/#comment-145607 Mannwich Fri, 13 Feb 2009 00:50:31 +0000 http://www.ritholtz.com/blog/?p=18980#comment-145607 @VennData: LOL. Do they still call those leagues the "pony leagues?" I think you're dating yourself there... Brings back memories for me thought. @VennData: LOL. Do they still call those leagues the “pony leagues?” I think you’re dating yourself there…

Brings back memories for me thought.

]]> By: VennData http://www.ritholtz.com/blog/2009/02/greenspan-blame-the-rating-agencies/comment-page-1/#comment-145602 VennData Fri, 13 Feb 2009 00:14:59 +0000 http://www.ritholtz.com/blog/?p=18980#comment-145602 These rating agencies have had this anti-trust exemption ala MLB. Why weren't they taking the juice? They might have had enough time to read the CMBS and CDO documentation and sent them from AAA down to the pony leagues. These rating agencies have had this anti-trust exemption ala MLB. Why weren’t they taking the juice? They might have had enough time to read the CMBS and CDO documentation and sent them from AAA down to the pony leagues.

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