Ratings agencies failed to properly assess risk from "summary" of The Big Short by Michael Lewis
The rating agencies were supposed to assess risk. They were supposed to decide how risky bonds were. They failed spectacularly. They didn't just make mistakes. They made mistakes that almost blew up the world economy. They gave high ratings to bonds that were junk. They said the bonds were as safe as the United States government. They said the bonds were as safe as gold. They were wrong. The bonds were toxic. They were ticking time bombs. They were about to explode. The rating agencies were paid by the banks. The banks were selling the bonds. The banks wanted the bonds to look safe. The rating agencies made them look safe. They ignored the warning signs. They ignored the facts. They ignored common sense. They were too cozy with the banks. They were too greedy. They cared more about money than about honesty. They didn't do their jobs. They didn't protect investors. They didn't protect the economy. The rating agencies were sup...
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