Or, Barack Obama sucks at 11-dimensional chess. On July 14, 2011, S&P was assuming that 2001 and 2003 tax fraud deferrals would expire at the end of 2012 [Update: link updated, via MG; PDF–see page 4]. It is no longer making that assumption, which is worth another $4T. Brad DeLong annotates/redlines the press release without […]
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 […]
Via Ellie Lang, the NYT (no link, unless this works) lists thirteen (13) countries that have a AAA credit rating from S&P: Switzerland Hong Kong Sweden Germany Canada Denmark Britain Netherlands Finland Norway Austria France Australia The thing all thirteen have in common? All provide National Health Care.
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 […]
Find a set of Mortgage-Backed Securities that are (1) still rated AAA by S&P, (2) have a WAL the same as (close to) an on-the-rin US Treasury, and (3) still have a Factor within 5% of the expectation of a generic MBS of that maturity (that is, are not clearly impaired). Post the CUSIP(s) in […]
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 […]