Moody’s working overtime, Credit crunching

Posted: February 7, 2008 at 4:14 pm by Chuck

Moody’s is on a roll, along with the other rating agencies. Moody’s has cut XL Capital (XL) ratings to A3 from AAA. The December Consumer Credit numbers are out: $4.5B versus last report of $17B. That’s not good, and we’ll tell you why tonight. I’m an eternal optimist, so even though Chuck and I knew we were in a recession, I did not want to believe it. These numbers have made a believer out of me.

I’m hearing that KB Homes (KBH) is being accused of inflating appraisals to close pending sales. Some buyers are saying the company hid declining property values. Geesh.