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View Diary: BREAKING: Standard and Poor's GUILTY, “deceived” and “misled” Investors (91 comments)

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  •  A simple explanation of what S&P gave a AAA rating (4+ / 0-)

    It was nothing more than a simple, naive strategy of doubling your bet after a loss

    If I lose $100 on my first hand at blackjack, I will bet $200 on the second hand. I I lose on that hand, I will bet $300 on the next hand ... and keep doing it (even if I have to borrow to win).

    Any time I win, I will end up with a net profit of $100.

    The theory is that at some point I will  win a bet (unless the game is fixed) and recoup all my losses.

    And it was the blogs that argued against the stupidity of the ratings agencies.

    The Bush SEC was, of course, out to lunch (probably looking for WMD).

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