Fitch, the credit-rating agency, lowered its ratings on WaMu and others as a result of its analysis and realization that it totally screwed up in its earlier ratings of the luckless lenders.
There might be a shred of good news: The catastrophe now being called the "subprime problem" may end sooner that originally anticipated. It seems that a lot of the losses have already been accounted for or will occur in the first couple of quarters of 2008. Once all the losses have been digested, and bank stocks fully beaten down (can anybody say WM at $5?), a new frenzy will ensue.
All thanks to capitalism. And ratings agencies like Fitch and S&P who could not, and still cannot, rate debt instruments with any accuracy. Who the heck believes these guys anymore?
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Posted by billspaced | 4:42 AM | Mortgage Meltdown, Real Estate | 0 comments »