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Dean Baker criticizes major credit rating agencies Moody's and S&P for classifying hundreds of billions of subprime mortgage-backed securities as investment grade.
He suggests these agencies were incentivized to provide such ratings.
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Baker has previously warned that the bursting of a large economic bubble could lead to a significant recession, as detailed in earlier analysis. He recently noted that Anthropic is accelerating its IPO plans to avoid possible investor scrutiny following reassessments of AI sector risks, according to another recent article. These comments reflect his ongoing focus on risk assessments across sectors.