SEIZE STANDARD AND POOR’S

So the guys who were complicit with the entire credit crisis and subsequent collapse, via rating junk as shit CDO’s AAA, are now finding religion by warning the United States may be subject to a credit downgrade?!? Although I agree with them, I do not believe they should have a say at all. As a matter of fact, I believe they should lose their authority to opine on the credit quality of sovereign debt since they suck so bad. It’s not like they made a few mistakes. They nearly destroyed the entire fucking world with their AAA rating bullshit. Now, after everything is to hell in a hand basket, partly thanks to them, they threaten to downgrade our sovereign debt? Something doesn’t smell right.

If I was writing a book of fantasy, pure fiction, I could not make up a more sinister plot to overthrow the U.S. government than the evil shit flowing out of S&P. Who needs conventional warfare when you could simply choke off the liquidity of a nation vis a vis scare tactics?

Ten years ago, they said it was “safe as shit” for investors to buy CDO’s, knowing full well they were garbage. Any credit analyst worth his salt could tell you inside of 5 minutes they were not AAA rated paper, even though they were. So, ten years ago, CDO’s were great. Then, the housing market collapsed and the banks got fucked for holding all of that paper. As a result, many went out of business, but all tightened up and froze lending activities. The result was a doubling of national unemployment, if not more. Since then, the Federal Reserve has been forced to print new money, in order to stave off deflation. They are purposely devaluing the dollar to help our exporters and create the illusion of economic activity. Out of nowhere enters S&P saying “fuck that shit. Your national debt is fucked due to your binging out on CDO’s. We’re gonna slash you guys and destroy the country.”

I know I am jaded; but they should not have a say at all.

The result: stocks are plunging, old school style, now down nearly 200. EDZ, TZA and other inverse ETF’s are off to the races and my stocks are getting S&P’d. My refineries are not doing too bad, all things considered. If people took the time to look, crack spreads are up more than 2%. That’s right folks, when crude drops more than gasoline, that’s good for refiners. Nonetheless, I am interested to see how the tape plays out. We could start to see a “buy the dip” mentality creep back in or “holy shit, OMG, we’re fucked” trading action infect the minds of over-coked, lazy ass money managers.