You Get What You Pay For « The Baseline Scenario
Standard & Poor’s downgrade of United States government debt last month has been much debated, but not enough attention has been devoted to the fact, reported last week by Bloomberg News, that it continues to rate securities based on subprime mortgages as AAA.
In short, S.&P. is suggesting that these mortgages are more creditworthy than the United States government – a striking proposition.
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