But they still get paid?*!!?**!
This deceptively important Reuters story, "Ability to track risk has shrunk 'forever' -Moody's," which says that financial innovation has created information asymmetries that make it impossible for participants to understand their exposures fully. That position may cynically be seen as a defense of the rating agencies' poor performance, but the implications are much greater than that. The biggest implication is for intermediaries. Moody's is saying that intermediaries cannot know their risk exposures with a high degree of confidence, due to complexity of financial instruments, opacity, and leverage.