It’s Fed Versus Moody’s for ‘Most Wrong’ Crown
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Nov. 18 (Bloomberg) -- Who was more wrong in the run-up tothe financial crisis of 2008: the Federal Reserve or Moody’sInvestors Service? This isn’t an academic question; bothorganizations are still hugely relevant to shaping the way wesee our financial system and the risks it contains. And both arenow apparently underestimating the dangers again.
To be fair, the thinking at both places has shifted, butnot anywhere close to enough. The reason for this is simple: Theincentives that encouraged their misperceptions before 2008remain in place today.