S&P is a JOKE: Subprime Mortgage Bonds Getting AAA Rating Denied to U.S. Treasuries

[Tom B]

Subprime Mortgage Bonds Getting AAA Rating S&P Denies to U.S. Treasuries

By Zeke Faux and Jody Shenn - Aug 31, 2011

Standard & Poor's is giving a higher rating to securities backed by subprime home loans, the same type of investments that led to the worst financial crisis since the Great Depression, than it assigns the U.S. government.

S&P is poised to provide AAA grades to 59 percent of Springleaf Mortgage Loan Trust 2011-1, a set of bonds tied to $497 million lent to homeowners with below-average credit scores and almost no equity in their properties. New York-based S&P stripped the U.S. of its top rank on Aug. 5, saying Washington politics were making the country less creditworthy.

Read more...

http://www.bloomberg.com/news/print...-aaa-rating-s-p-denies-to-u-s-treasuries.html

 

[chewbacca]

no it ain't.........s&p usa downgrade call was the only great call it ever made..........we got 211 trillion in unfunded liabilities........http://www.npr.org/2011/08/06/139027615/a-national-debt-of-14-trillion-try-211-trillion...........more usa downgrades to come.......other agencies will also get on board eventually once they overcome the fear of retaliation from the government.

 

[Tom B]

Quote from chewbacca:

no it ain't.........s&p usa downgrade call was the only great call it ever made..........we got 211 trillion in unfunded liabilities........http://www.npr.org/2011/08/06/139027615/a-national-debt-of-14-trillion-try-211-trillion...........more usa downgrades to come.......other agencies will also get on board eventually once they overcome the fear of retaliation from the government.

Do you think subprime mortgage bonds should receive a AAA rating? Do you think subprime mortgage bonds are safer than US Treasuries?

 

[trendlover]

This is (re remic) and for the private placement. So is limited to only some investors, and most can not resell.