Relevant and even prescient commentary on news, politics and the economy.

Ratings QOTD

From Crash of the Titans, pp. 33-34: The largest chunks of these [created by Merrill in the winter of 2006-2007] CDOs still carried triple-A ratings, at least in name, because the credit rating agencies hadn’t bothered to recalibrate their antiquated ratings models. But almost no one was willing to buy the triple-A portion of these […]

Forthcoming Tyler Cowen articles that will be Echoed by Felix Salmon

References are here (Cowen) and here (Salmon).* Just because Charlie Sheen got drunk, did some other drugs, and committed adultery doesn’t mean he’ll do it again. Just because someone who calls himself Jack the Ripper has killed two women in London doesn’t mean he’ll do it again. Just because the U.S. dropped a hydrogen bomb […]

Moody doesn’t like the US

From the latest Financial Times:Moody’s says spending threatens US rating The US is at risk of losing its top-notch triple-A credit rating within a decade unless it takes radical action to curb soaring healthcare and social security spending, Moody’s, the credit rating agency, said on Thursday. In its annual report on the US, Moody’s signalled […]