Insurance Rating Agencies - Sham ?

[Guest]

If AIG has an A++ rating what does that say about the rating companies,

and what does that say about other companies with an A++ rating ?

Is the rating system now a sham ?

 

[Mr. Bill]

Wait, is this a 2008 question, or a 2007 question, or a 2006 question?

 

[Guest]

I've been in the biz for a little under 10 years and I never
realized this was such an issue but I deduct it is from your post.

Interesting.

 

[Mr. Bill]

The rating agencies have been hammered for poor pratices for years. Funny thing, though, as long as someone was paying the rating agency, they got the rating. Very rarely was it the one they didn't want. As always, caveat emptor. Many a municipal bond investor has seen their investment go to zero.

 

[Guest]

Geezzz - so is it fair to expect the real estate market to
bottom out next summer once the election and corporate and private taxes are over ?

 

[moonlightandmargaritas]

If AIG has an A++ rating what does that say about the rating companies,

and what does that say about other companies with an A++ rating ?

Is the rating system now a sham ?

Fitch is the only one that is worth a damn.

 

[Mr. Bill]

Geezzz - so is it fair to expect the real estate market to
bottom out next summer once the election and corporate and private taxes are over ?

Not sure what you meant to say, but if personal, corporate, state, municipal taxes are all going to go up (do you hear that "giant sucking sound" coming out of the economy?), then why would you expect the real estate market to go up?

 

[Guest]

well I don't think the RE market is going up anytime soon, just that it would fall apart for an 2 to 3 year depression.

thoughts ?