EU to investigate ratings agencies

[lovuian]

http://feeds.bignewsnetwork.com/?sid=273896

The European Commission will investigate the role played by credit rating agencies in the recent crisis over subprime U.S home loans.

Commission officials believe the securitised subprime mortgage market would not have grown to the extent that it did without the favourable ratings given by some agencies.

Banks first warned about a potential crisis in subprime home loans in 2006, but credit agencies Standard and Poor's and Moody's only downgraded their ratings on the subprime securities earlier this year.
more...

This smells of creative bookeeping and lies
seems Wallstreet sold off their bag of bad debt to EU banks who were lied too

Its amazing how lies and fraud works

[Horse with no Name]

1. Wonder what they are going to say when they find out that

they willingly gave these mortgages to high risk clients--people that probably couldn't qualify for a department store credit card were able to get hefty mortgages.
That ought to go over like a ton of bricks...NOT.

[nadinbrzezinski]

2. This whole mess is going to create so much

pain that getting foreign investors to bet in our economy will be hard

[lovuian]

3. they always have to find a sucker

and the EU banks fell for it
but who could blame them according to the Info everything looked ok
just like Enron

[Horse with no Name]

4. What I wonder about

Not necessarily the stock market but the trade deficit--who would buy our debt with this type of scandal attached?
Who will extend credit?

[nadinbrzezinski]

5. China

end of story

At this point strategically they are poised to do to us what we have done to many other countries

[Horse with no Name]

6. That is exactly the stuff

that nightmares are made of.