Just to add one small point regarding debt risk and cavalier lending if not recklessness.
I read a very good piece recently regarding Ratings Agencies and Lehman Brothers Holdings Inc, Merrill Lynch and others.
In investigation by the FBI and other authorities is currently underway in the US regarding the rating agencies, Lehman Brothers Holdings Inc, Merrill Lynch and others.
To cut through all the issues, it is basically this.
Certain ratings agencies gave a AAA rating to Lehman Bros in July. The following month it downgraded Lehman to junk - 18 basis points below AAA.
Lehman of course was once a pillar of the US financial establishement.
This had never occured before.
Why?
Regulators are looking at possible fraud and improper disclosure at the highest levels.
The investigations are continuing and we may soon be seeing a long drawn out drama which could ultimately lead to long terms of imprisonment should wrong doing be discovered.
Personally, I would love nothing more than to see these "suits" as I call them, end up rubbing shoulders with common criminals, because that is surely what they are.
