“…
NCRC President and Chief Executive John Taylor said Tuesday that inflated credit ratings have devastated families who have lost their homes to foreclosure. Mr. Taylor blamed conflicts of interest in the ratings business, noting that rating firms are paid by the companies whose securities are being rated.

The Washington-based housing group urged the SEC to examine whether rating firms were “unduly influenced” by securities issuers or underwriters to give inflated ratings to residential mortgage-backed securities. It also called for SEC scrutiny into whether rating firms strayed from their usual standards or defrauded investors, for instance, by failing to consider factors such as mortgage fraud, declining underwriting standards and new loan products for riskier “subprime” borrowers.
…”

As the oversupply of homes start dictating prices (as soon as two or three years from now) the magnitude of derivative losses will be mind-boggling. That is when ratings companies will be hung.

Now, George Soros says authorities weren’t regulating? They were regulating loan guarantees and got the expected results.

Or was Soros belly-aching about the probable fraud committed by derivative ratings Companies? Laws already exist against fraud. Expect litigation.

There are a couple more shoes to drop: American wages, health costs, government costs, resource consumption, and debt service are out of whack in comparison with every other nation on earth. Soros has one thing right, for the wrong reason, that this isn’t going to be over any time soon.

As an underwriter, I couldn’t believe the loans that got approved!!! All within “Guidelines”. Common sense was out the door.

Liberals helped create this too…