On Sun, 23 Mar 2008 13:03:41 -0500, Ignoramus14119
wrote:

snip
Looks like there was plenty of investors who bought mortgage loans
containing those crap loans, who did not even bother to think about
their quality.
snip
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That was what the rating companies got the big bucks for.

AAA was susposed to indicate minimal risk investment grade
securities. The CDS was susposed to insure the [re]payment of
interest and principal.

It's like grade eight bolts. You buy based on the
certification/specifications. You expect counterfit grade 2
marked as grade 8 to come from a no-name Asian supplier, not
Unbrako.




Unka' George [George McDuffee]
-------------------------------------------
He that will not apply new remedies,
must expect new evils:
for Time is the greatest innovator: and
if Time, of course, alter things to the worse,
and wisdom and counsel shall not alter them to the better,
what shall be the end?

Francis Bacon (1561-1626), English philosopher, essayist, statesman.
Essays, "Of Innovations" (1597-1625).