Janet Tavakoli detailed the malfeasance of ratings agencies in regard to MBS’s in her book “Dear. Mr. Buffett.”
As for easy answers, there are a couple of easy answers to our financial problems:
Cut the budget 20% across the board. Wages, salaries, entitlements (yeah, SS takes a hit) Congressional salaries, the works.
Reduce capital gains taxes to, say, 10%. Eliminate all death taxes. Reduce corporate taxes to 20%.
The answers are easy. It’s that politicians are afraid to face the truth and tell the truth. Nor is there any political courage to do the right thing.
Everyone can squawk all they want. Fiscal reality is fiscal reality.
Btw, I think if the above were done, the value of the dollar would climb tremendously, which would help to offset the spending cuts.
The problem is that all the plans for cutting spending happen 10 or 20 years later, after the current office holders are gone.