1) . Generally speaking, are ratings of debt (by Moody's, S&P, etc) -- especially the various forms of mortgage debt, and "C"-and-lower grades of bonds -- more reliable now than they were in 2007/2008?
FOLLOW-UP QUESTION…
-- In the 6 or 12 months prior to a future recession, will a sizable segment of these debt ratings drop noticeably, as ratings agencies detect problems in creditworthiness?
-- Or will ratings remain mostly unchanged right up to the point where a debt-bubble bursts (in a few days or weeks) and announces the recession? In which case overly-generous ratings are only seen as flawed in hindsight?
Read more: Are ratings of debt (by Moody's, S&P, etc) more reliable now than they were in 2007/2008? BELOW?
