I finally watched the Big Short last week,
In the movie, rating agencies sold ratings for a price and the WSJ wouldn't dare expose anything resembling the reality of the fraud.
Tonight I have déjà vu as I read this headline and ask, "Is anything real?"
'Godfather' Muscles MOODY'S to Rescind Junk-Bond Rating...
Chicago has already stopped hiring Moody’s to rate new bond deals, relying instead on rivals S&P Global Ratings and Fitch Ratings that continue to consider its debt investment grade.
“It has become increasingly clear that Moody’s rating methodology and agenda are far from objective and independent,” Emanuel said in a Dec. 8 letter to Moody’s Chief Executive Officer Raymond McDaniel that was released by the city. “Your current rating does not accurately reflect the city’s credit or our ability to pay debt service when due.”
Chicago became the only major U.S. city outside of Detroit with a junk rating in 2015, when Moody’s downgraded it because of the escalating pension bills triggered by years of failing to set aside enough money to cover promised benefits.
Edited by Rogerdodger, 11 January 2017 - 07:00 PM.
