I've Had an Epiphany.

The ratings agencies are simply tarted-up versions of the conservative blogosphere. Witness this exchange between two guys in S&P's structured product division:

Official 1: By the way, that deal is ridiculous

Official 2: I know, right. The model definitely doesn’t capture half the risk.

Official 1: We should not be rating it

Official 2: We rate every deal. It could be structured by cows and we would rate it

A nip here, a tuck there, and Michelle Obama's having caviar at the Waldorf.