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- #81
One thing is for sure, Moodys is defiantly a political or government controlled organization. Remember all those good ratings they gave bad subprime CDOs? Likely Government Orders.
do some research. They are paid by corporations for their ratings. And they have competition. Who would you get to rate your securities someone who rates them accurately ie high risk or someone who rates them low risk based on no empirical data or models?
Remember the lower the risk rating the more money you make.
So the US Government just reduced Moodys payment so Moodys cut the US Debt Rating?