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	<title>Comments on: Subprime conspiracy unearthed. Maybe&#8230;</title>
	<link>http://ftalphaville.ft.com/blog/2007/08/21/6717/subprime-conspiracy-unearthed-maybe/</link>
	<description>FT Alphaville from FT.com</description>
	<copyright>Copyright The Financial Times Ltd 2006. "Alphaville", "FT" and "Financial Times" are trademarks of the Financial Times.</copyright>
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	<pubDate>Sat, 30 Aug 2008 03:21:01 +0000</pubDate>
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	<item>
		<title>by: steve barry</title>
		<link>http://ftalphaville.ft.com/blog/2007/08/21/6717/subprime-conspiracy-unearthed-maybe/#comment-5889</link>
		<pubDate>Sat, 25 Aug 2007 12:28:51 +0000</pubDate>
		<guid>http://ftalphaville.ft.com/blog/2007/08/21/6717/subprime-conspiracy-unearthed-maybe/#comment-5889</guid>
					<description><![CDATA[the joke is on asia and the middle east.  
we get the oil, the goods, and low interest rates.. FOR FREE!!!]]></description>
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		<title>by: Hayek</title>
		<link>http://ftalphaville.ft.com/blog/2007/08/21/6717/subprime-conspiracy-unearthed-maybe/#comment-5774</link>
		<pubDate>Tue, 21 Aug 2007 10:02:28 +0000</pubDate>
		<guid>http://ftalphaville.ft.com/blog/2007/08/21/6717/subprime-conspiracy-unearthed-maybe/#comment-5774</guid>
					<description><![CDATA[What utter nonsense.  The rating agencies publish their criteria for the world to see.  The end investor in an RMBS or CDO or CDO-squared is not spared responsibility for evaluating the value of the resulting securities.  There is no free lunch in the investment world - if a AAA-rated security is offered at a credit spread consistent with BBB-rated securities in another market, it is sure sign that either complexity or leverage suggest the security is not the equivalent of AAA ratings for which the default data are available and it is a sure sign that the security requires a higher capital haircut than other AAA securities.  Also, if there is insufficient default data on the underlying collateral (measured in decades), the rating criteria is merely guesswork and it is the investor's responsibility to query the basis upon which the criteria were developed and determine for himself or herself whether that criteria is an acceptable mapping to the benchmark ratings.  The rating agencies are an easy target - but it is the investor that has responsibility for evaluating the investment he makes - even in a yield-seeking environment where risk is largely ignored in a desperate rush to expand assets under management.]]></description>
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