The winner is…. well, first let me say there are so many contestants, and narrowing it down to these three, which are diverse and telling, was difficult.
Winner: Defective Moody’s Program Issues Billions of Erroneous AAAs
“This begs the question that the so-called bug wasn’t a bug at all but a feature, that the model was designed (or tweaked) to produce ratings that conformed with S&P. After all, if an issuer got an AAA from S&P and wanted a second rating from Moody’s, it would kill Moody’s chance of ever rating similar paper for it to issue a markedly lower score.”
The culprit: a computer “glitch.” Heh. Uh-huh, you heard me right. Moody’s would never intentionally mislead anyone and can fully assure us that their methodologies were as scientific and rigorous as sprinkling holy water, waving the royal sceptre, and Moody’s would like to take this opportunity to sincerely promise it would never cum in your mouth. Swear to God.
I suppose if this were the 50’s they coulda blamed this one on a dock strike.
First runner up
If you’ve been in Santa Barbara lately, did you happen to take notice of the spread of Bushvilles (a.k.a. Tangelovilles)?:
“There are 12 parking lots across Santa Barbara that have been set up to accommodate the growing middle-class homelessness. These lots are believed to be part of the first program of its kind in the United States, according to organizers.”
Second runner up
“The story of the foreclosure of Long Beach Democrat Laura Richardson’s Sacramento home is a tale of a real estate market gone sour. It is also an illustration of how far many candidates will go to seek elected office, even if it means quite literally mortgaging their own financial future.”
“While being elevated to Congress in a 2007 special election, Richardson apparently stopped making payments on her new Sacramento home, and eventually walked away from it, leaving nearly $600,000 in unpaid loans and fees.
[Capitol Weekly][Hat tip]
The prevailing attitude investors have is ‘as long as he is making money, I’m making money-‘ but looking the other way while executives lied, cheated, and fudged numbers to guarantee their bonuses, tied into stock performance, is the root cause of today’s systemic failure.