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November 11, 2008


Robert Waldmann

Quiggin's claim is literally demonstrably exactly true. Someone named Eisman had a conversation with someone at S&P. I quote mr Liars' poker quoting him.

"He called Standard & Poor’s and asked what would happen to default rates if real estate prices fell. The man at S&P couldn’t say; its model for home prices had no ability to accept a negative number. “They were just assuming home prices would keep going up,” Eisman says."

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