25 Apr 2008 - Another bit of older commentary but still very worthwhile.  A couple of weeks ago, Linda Lowell at Housingwire recently wrote a great piece of commentary looking at how the past data that the rating agencies used was faulty or misinterpreted.  Mainly she points to the fact that the mass amounts of mortgage data that went into the rating agencies models after securitization drowned out previous smaller amounts of data, especially data from the great depression.  This should be required reading for anyone questioning how the rating agencies got it so wrong.
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