40 to 45 Percent of the World’s Wealth Gone

In roughly 18 months…

“Rating companies have been the focus of intense criticism for their role in granting top ‘AAA’ ratings for complex bonds that later plummeted in value, resulting in subsequent rating cuts, in many cases to junk status. ‘Once you bought into … the Triple A paper and it turned out to be paper that was in many situations going to end up defaulting, then you really had the makings of a global problem,’ he said (Blackstone Group LP CEO, Stephen Schwarzman). Schwarzman said problems were then exacerbated by mark-to- market accounting rules. Those rules ask banks and other financial institutions to price assets at a value related to how they would be sold in the open market.

Visit article: http://moneynews.newsmax.com/streettalk/blackstone/2009/03/11/190625.html

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