TNR BLOGS

December 01, 2008 | 2:02 PM
December 01, 2008 | 1:00 PM
December 01, 2008 | 12:42 PM

December 01, 2008 | 11:22 AM
December 01, 2008 | 11:10 AM
December 01, 2008 | 9:57 AM

July 26, 2008 | 2:24 PM
July 23, 2008 | 1:55 PM
July 17, 2008 | 3:56 PM

December 01, 2008 | 1:36 PM
December 01, 2008 | 12:00 PM
November 29, 2008 | 3:23 PM
COLUMNISTS
TODAY'S STORIES
13.04.2008
It Ain't Over

I've posted about the rating agencies--Moody's, S&P, Fitch--myself, and about their culpability in the financial calamity that has now destroyed the markets in almost everything. I say it, so it's an opinion.

But when the chairman and CEO of Lazard says it, believe me, you should really pay attention; here is Bruce Wasserstein in Thursday's Wall Street Journal. And here's the essence:

The ratings agencies are at the vortex of the storm.  What were they thinking?  In a housing crash situation, which had a reasonable chance of happening, how could the securities rated AAA be worthy of that rarified appellation. They couldn't and they shouldn't have been. But it was that label that got institutions around the world to buy into the bubble. That demand generated the hunger for more product and therefore drove "innovations" such as the document-free loan. The losses and write-offs will continue.



Posted: Sunday, April 13, 2008 3:53 PM with 4 comment(s)

Comments

You must be logged-in to comment.

Not a subscriber? Click here to get a digital or print and digital subscription to The New Republic!

The Spine said:

Actually, the Wall Street Journal was pretty slow to pick up this story about rating agencies, a story

April 13, 2008 4:00 PM

nhrds said:

Not true; WSJ was faster than most.

April 14, 2008 1:39 PM

The Spine said:

I've been posting about the rating agencies (Moody's, Fitch, S&P) for months. They and the

April 22, 2008 1:37 PM

The Spine said:

Moody's (about which I've posted a few times ) has announced that "The integrity of our

May 22, 2008 4:56 PM

Double click this space to insert your ad.