Home > Cande = Conjecture & Exaggeration, Fande = Fact & Evidence, The Economy > Triple-A Rated (in 2006) = 93 Percent Junk (in 2010)

Triple-A Rated (in 2006) = 93 Percent Junk (in 2010)

http://www.nytimes.com/2010/05/02/opinion/02sun1.html?hp

EXCERPT:

Ninety-one percent of the triple-A securities backed by subprime mortgages issued in 2007 have been downgraded to junk status, along with 93 percent of those issued in 2006 and 53 percent of those issued in 2005. On Jan. 30 of 2008 alone, Standard & Poor’s downgraded over 6,300 subprime residential mortgage-backed securities and 1,900 C.D.O.’s.

http://www.nytimes.com/2010/04/26/opinion/26krugman.html

EXCERPT:

No, the e-mail messages you should be focusing on are the ones from employees at the credit rating agencies, which bestowed AAA ratings on hundreds of billions of dollars’ worth of dubious assets, nearly all of which have since turned out to be toxic waste. And no, that’s not hyperbole: of AAA-rated subprime-mortgage-backed securities issued in 2006, 93 percent — 93 percent! — have now been downgraded to junk status.

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