patrick.net

 
  forgot password?   register

#housing #investing #politics more»
736,831 comments in 75,789 posts by 10,917 registered users, 1 online now: YesYNot

new post

Justice Dept, states consider suing Moody's for bogus mortgage bond ratings

By Patrick   2013 Feb 10, 8:57am   515 views   6 comments   watch (0)   quote      

http://www.reuters.com/article/2013/02/07/moodys-investigation-idUSL1N0B78YZ20130207

Feb 7 (Reuters) - The U.S. Justice Department and multiple states are discussing also suing Moody's Corp for defrauding investors, according to people familiar with the matter, but any such move will likely wait until a similar lawsuit against rival Standard and Poor's is tested in the courts.

#housing

Comments 1-6 of 6     Last »

1   thomaswong.1986     2013 Feb 10, 9:21am  ↑ like   ↓ dislike   quote    

Facebook Stock PE 1800x earnings
LinedIn Stock PE 790x earnings

the same was true with housing both during 2000 to peak years and even today.

There wont be much of a lawsuit regards bogus ratings. whats your basis for "ratings".. insane to buy. but main-street has this addiction to throw the dice and bet the whole house, they have no interest in ratings and any measures of fundamental valuations.

2   tatupu70     2013 Feb 10, 10:00am  ↑ like   ↓ dislike   quote    


whats your basis for "ratings"..

It's pretty obvious--they were rating the credit worthiness of the homeowners. And they should have been able to figure out that a good percentage of the loans were crap and rated them accordingly.

3   thomaswong.1986     2013 Feb 10, 10:12am  ↑ like   ↓ dislike   quote    

tatupu70 says

It's pretty obvious--they were rating the credit worthiness of the homeowners.

real estate always go up.. and you have the Govt to cry to if things don't go well.

try to tell someone there is a "RE bubble" back in 2000 to 2008.. good luck!

try to tell someone RE prices in South CA fell by as much as 40% from 1989 to mid 90s... all you get is utter denial of such events. I still see it today...

realistically speaking, the home buyers like so many decades past were OK with their

income and credit history .. it was the price of the home which skyrocketed ... yet the

homes didnt change ! We had bogus pricing !!!

4   tatupu70     2013 Feb 10, 11:06am  ↑ like (1)   ↓ dislike   quote    

Thomas--

That is all completely irrelevent to whether Moody's committed fraud. Did they misrepresent the credit worthiness of the buyers or not?

5   thomaswong.1986     2013 Feb 10, 11:16am  ↑ like   ↓ dislike   quote    

tatupu70 says

Thomas--

That is all completely irrelevent to whether Moody's committed fraud. Did they misrepresent the credit worthiness of the buyers or not?

a nice way for you do totally ignore all the irrational pricing everyone was drunk over.

6   tatupu70     2013 Feb 10, 8:19pm  ↑ like   ↓ dislike   quote    

thomaswong.1986 says

a nice way for you do totally ignore all the irrational pricing everyone was
drunk over.

Yes, I'm also ignoring the price of tea in China. You know why? Because it is meaningless with respect to the topic of this thread.

If anything, the fact that pricing was so irrational should have made it easy for Moody's to apply harsh ratings to the securities.

Comments 1-6 of 6     Last »

users   about   suggestions   contact  
topics   random post   best comments   comment jail  
patrick's 40 proposals  
10 reasons it's a terrible time to buy  
8 groups who lie about the housing market  
37 bogus arguments about housing  
get a free bumper sticker:

top   bottom   home