Trouble for McGraw-Hill (MHP) And Moody’s (MCO)

Last time it was the investment banks who got blamed for costing investors money.  This time it’s those purportedly-independent-but-actually-deeply-conflicted rating agencies.  Lawsuits are brewing (Find/Replace/Sue).  Finger-pointing goes hand in hand with any market bust, but depressed investors  seeking scapegoats should also look in the mirror.  Then they should go buy index funds.

From 24/7 Wall St:

Moody’s (MCO) is already in a ton of trouble due to is rating on sub-prime debt and mortgage-backed securities. According to the FT, the European Union is opening an investigation because it “believes the ratings agencies failed to act quickly enough to warn investors.” The US Congress is also going to begin an investigation…  Continue reading here.