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Posted by: Doug Henwood | August 5, 2011

Not enough cows at the Treasury

reminder of the great days of the mortgage bubble, from the same folks who brought you this afternoon’s U.S. Treasury downgrade, Standard & Poor’s:

Official #1: Btw that deal is ridiculous.
Official #2: I know right…model def does not capture half the risk.
Official #1: We should not be rating it.
Official #2: We rate every deal. It could be structured by cows and we would rate it.

Of course, that’s because the dealmakers paid S&P for the ratings. Not so the U.S. Treasury—it gets S&P’s judgment for free.

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