In Paul Krugman’s NYT’s OpEd column this morning, he compares the CDOs with Enron and wonder’s where the ratings agencies were during the subprime expansion:
"Seriously, it’s starting to look as if C.D.O.’s were to this decade’s housing bubble what Enron-style accounting was to the stock bubble of the 1990s. Both made investors think they were getting a much better deal than they really were. And the new scandal raises two obvious questions: Why were the bond-rating agencies taken in (again), and where were the regulators?"
Regular Big Picture Readers will recall last week’s posts on each of these subjects:
I’m just sayin’ . . .