Former Federal Reserve Chairman Alan Greenspan sharply criticized ratings agencies for their role in the current credit crisis. ” People believed they knew what they were doing,” he said, ” And they don’t.”
One of those companies that didn’t know what they were doing was Moody’s which holds a 40% share of the world’s credit ratings market.
Moody’s also owns Economy.com which has been very bearish on home prices for years. I guess Moody’s dismissed it’s own Economy.com forecasts.