One day during an S&P officer ratings exam
Q: What do you rate the senior tranche of an issue 100% composed of subprime loans?
S&P: AAA
Q: What do you rate the senior tranche of a resecuritization of the mezzanine tranche of a subprime issue?
S&P: AAA
Q: What do you rate an insurer with a sizeable holding of CDS to subprime issues?
S&P: AAA
Q: What do you rate a sovereign country that issues the global default currency, and has 100% of its debt in its own currency?
S&P: Uhm……A-?
We got potential here...
Wednesday, April 20, 2011
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2 comments:
Ha! That nails it...
Haha, good one!
S&P didn`t even have the guts to issue a full downgrade. They`ve just put US on a watchlist.
Goes to show these rating agencies are just power tools in the hands of big market manipulators.
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