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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Dale Baker who wrote (28655)	10/22/2007 12:00:41 PM
From: Madharry	Read Replies (1) \| Respond to of 78742

i would agree that moodys isnt responsible for the drop in a price of an asset but they are responsible when the default rate becomes enormous relative to a AAA rated credit. Someone finally explained to me the scam behind the Master SIV. they will purchase AAA rated deals at 94% + a 4% note. The whole point of this is to set a price for these securities so that they dont have to mark them down , irrespective to what has happened to default rates etc. It will be interesting to see whether the treasury provides the funds for this venture. I Somehow cant see the banks themselves using their own capital to put $100 billion into this. Meanwhile the banks seem to be the one area recovering nicely today. Plunge protection team at work?