Archive for the ‘Rating Agencies’ Category

Fannie Mae and Freddie Mac: Nowhere to Run, Nowhere to Hide, Baaybee!!

Saturday, July 12th, 2008

I’ve been waiting for thirty years. That’s when I first heard Milton Friedman predict that the real United States Deficit problem was not the one we all talk about. It is the one that will hit the fan when the Treasury assumes the Obligations of Freddie Mac and Fanny Mae, ...

The Rating Agencies: Buried in the Sand to the Neck as The Tide Creeps In.

Wednesday, June 25th, 2008

God, but I’m good. Know how to tell? Just read the title of the May 24th post. OK, I’ll cite it myself – “The Rating Agencies: Are They Doomed?” Now we learn that the SEC is giving serious thought to cutting off the agencies’ government-mandated monopoly status. (WSJ, June 24, ...

Four Credit Crisis Fallacies: Why We are Not Solving the Problems of The Financial System

Saturday, May 31st, 2008

Most citizens, we are told, take a cynical view of both Wall Street and Washington. It has given life to the candidacy of Barak Obama, perhaps. Do people of experience with The Street trust Washington to fix the problem? I don’t. I’ll tell you why. We are addressing problems we ...

The Rating Agencies: Are They Doomed?

Saturday, May 24th, 2008

The rating agencies have an interesting and distinguished history. I first focused on them when working for the Chicago Mercantile Exchange. We needed the permission of Standard and Poors Corporation to use their stock index to price our futures contract when it settled. Looking back at S&P’s decision to go ...