Cambridge AAA rated by Moody's city bonds down 30%!
A rating is just a rating?
Maybe, but the presumption is that the individuals doing the rating:
1. Have Integrity 2. Are unbiased and not influenced by the company issuing the security they are rating 3. Factor relative risk into the rating
Moody's did/had none of these. To blame people who bought AAA bonds or Munis for not doing more due diligence makes no sense, when so much of what the financial institutions was heavily obscured from the public -- though not from Moody's. When you bundle BB securities and resecuritize as AAA, that is gaming the system.
People object to regulation, but without it, business behaves like spoiled little children. Too many in the financial industry seem to believe they have the right to exploit others.