Wednesday, December 19, 2007

Mish's Global Economic Trend Analysis: Fitch Discloses Its Fatally Flawed Rating Model

Good article that predicted the subprime failure.. and shows the dependency of banks on their models.

Questions To Ponder

  • How many billions of dollars will be lost because of absurd pricing models?
  • How can it be that an entire system of investment decisions are based on ratings that the ratings companies tell everyone not to use for investment purposes?
  • Were the ratings companies grossly incompetent or just foolish?

Mish's Global Economic Trend Analysis: Fitch Discloses Its Fatally Flawed Rating Model

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