Monk's Den

[Bizreader]

"The G-20 officials also called for financial reforms, including
registration and regulatory oversight of all credit-rating agencies,
transparency for off-balance-sheet vehicles and improved accounting
standards."

Credit Rating Agencies are paid more for each derog so they are incentivized to keep inaccurate records to the determent of the borrower and lender.

The credit equation is simple: income minus expenses equals "disposable income". A debt to income ratio of 50% is reasonable, anything over that cuts too far into national savings and thereby jeopardizes the whole U.S. economy.