Moody's Bond Rating Software Glitch Exposed

The Implode-o-Meter has obtained from a reliable source the shocking details of the Moody's bond rating glitch, which led to the 'AAA' over-rating (by up to four notches) of billions in mortgage derivatives:

Regarding the details of the software "glitch" which triggered the raft of bogus ratings at Moody's, I'm afraid it's really all very technical, but one of the wags on the Yahoo! Finance message boards put it nicely in terms of more-easily-understandable pseudocode, thusly:

Code:

If bond_issue = "paying customer", then bond_rating = "AAA"

We'll bet they are sure slapping their heads over this one now! But hey, hindsight...