Thoughts on Moody's "Tough Stance"

"So assuming the S&P downgrades all $7.35 billion it is looking at and adding in another $5 billion for Moody's and let's be real generous by adding in $5 billion for Fitch we have a grand total of $17 billion of downgrades out of a pool of $565 billion of some of the worst mortgage dates to hold. That's a whopping 3% when according to Bloomberg, Almost 65 percent of the bonds in indexes that track subprime mortgage debt don't meet the S&P ratings criteria that were in place when they were sold." -- Hear, hear! We agree with Mish: what you are seeing is still mere token concessions; the waffling has gone on too long and the ratings co's must look like they are responding. But by affected market depth, these moves are still shallow.