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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Think4Yourself who wrote (109254)	3/12/2008 9:45:08 AM
From: ChanceIs	Respond to of 306849

>>>Lack of transparency is the real problem.<<< That is the whole problem in seven words. The whole problem!!!! >>>A better solution would be for the ratings agencies to actually do their jobs with respect to this paper but that isn't likely to happen.<<< In a sense that is a good solution - get an independent third party to evaluate the matter. Except ratings agencies are independentthird parties, and they will today be much, much conservative then they were a year ago. They currently face huge liabilities for previous work done poorly. Lots of the big IBs are getting sued as I write. The ratings agencies have never priced debt. They have applied a somewhat opaque alphabetical designation (AAA, Bb, etc) which I believe represents only a probability of default or total loss. Can a third party help??? I really have to wonder. An interesting train of thought. To an extent Buffett was a third party, and he mattered because he put out a bid vice an opinion. Opinions are only good if you will back them up.