Bill Saporito of Time.com offered his thoughts on S&P and Congress. S&P contributed to the Great Recession by giving AAA ratings to collateralized debt obligations (CDOs) backed by "garbage mortgages" from " Alt A subprime pond scum." Congress gave the ratings agencies their power and left it intact even after the financial meltdown. "After all, this is a Congress that let the banking industry run amok, bailed it out with access to trillions of dollars of credit, and has since done precious little to ensure that the process won't be repeated. Nor would Congress reform the ratings industry, which played vital role in the crisis. Nor did it agree a deal worked out between Obama and House Speaker John Boehner that would have preserved the AAA rating. If our Congress is that dumb, perhaps we deserved the downgrade."
Analysis: Why Congress and Standard & Poors deserve each other - Yahoo! News
Monday, August 08, 2011
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