Why didn’t it happen 6 months ago when BSC went under? Same fears and same problems. Credit, liquidty, mbs, cds, etc…
it started then but the run on the banks occurred last week
Because we crossed the chasm from “financial distress” to “revulsion” last week–the term “discredit” could also be used here.
I am not able to understand why Wachovia has investment-grade ratings from Moody’s Investors Service, Standard & Poor’s Corp. and Fitch. Can any of you explain in a little detail? Also, what is/was rating of WaMu? Don’t you think the role of rating agencies here has A LOT to do with the crisis too??
Yes, the rating agencies have played an enormous role in this crisis. WaMu was rated CCC which is something like 8 notches below investment grade.
anupamjain008 Wrote: ------------------------------------------------------- > I am not able to understand why Wachovia has > investment-grade ratings from Moody’s Investors > Service, Standard & Poor’s Corp. and Fitch. > if you are still taking advice from the agencies, you are living under a rock!
@ Daj224, No I am NOT taking their advice (and I get your point). So basically is it fair enough to conclude that credit rating agencies have been working under pressure (from various authorities) and that is (partially) the answer to the original poster’s question?
daj224 Wrote: ------------------------------------------------------- > anupamjain008 Wrote: > -------------------------------------------------- > ----- > > I am not able to understand why Wachovia has > > investment-grade ratings from Moody’s Investors > > Service, Standard & Poor’s Corp. and Fitch. > > > > > > if you are still taking advice from the agencies, > you are living under a rock! dude spongebob’s friend patrick lives under a rock
You don’t think Daj is insulting Patrick do you? Daj, say you’re sorry.