For the first time in ages, I am pleased with my Federal government, taking action against the perverts at S&P. First of all, they shouldn’t have downgraded the United Steaks. That’ll learn them. And secondly, they fueled the housing bubble with fraudulent ratings because their customers wanted AAA.
Anyone in the business of money management knows to laugh and urinate on the credit reports of the ratings agencies. It’s time to shut down these bucket shoppes and allow for some credible people to emerge.
I don’t think it’s too harsh to say S&P, Moody’s and Fitch were more than stupid during the housing bubble, but criminally fraudulent.
Just like the good folks from Arthur Andersen were put out of business post Enron, I see no reason why the same shouldn’t happen to these ratings agencies.
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Arthur Andersen.
Thanks.
Wishful thinking
Good to cancel limit order in for $MHP high 30s
Actually it was Arthur Andersen that blew up post-Enron. I worked at AA in Germany at the time and the global brand evaporated within 6 months (still amazes me). Definitely shows that no one is too big to fail if they really screw up, so let’s see what happens to the rating agencies.
I had a lot of clients who were partners at AA. It was an oversight. I corrected it.
Absolutely, but no one more credible is going to emerge. Look what happened to Egan Jones.
The most honest thing you can say right now is “municpal/sovereign debt is garbage. You’ll either not be repaid, or repaid with money printed out of thin air”.
Egan Jones screwed himself, being a sociopath pyscho
I heard Buffet has a big stake in Moodys – but he supported Obama. I heard on Michael Savage that he also has a big stake in railways which would lose money on the keystone XL pipeline. Could it actually all be that crazy? I don’t know, I just heard.
Unfortunately on purpose it is just a civil suit. Not criminal.
I was 2 years post-Andersen working at PwC when the Enron debacle happened- the speed with which AA went down in flames was staggering. Totally agree with your sentiment.
civil charges…who cares?!?!
Where are the criminal charges in all this?
They’ll pay a big fine, no one goes to jail, and it’ll happen all over again.
“First of all, they shouldn’t have downgraded the United Steaks.”
I looked several times on the world map. Where is this place you call United Steaks…..
Are you an OccuPod?
Omaha
http://www.youtube.com/watch?v=Tnl8gt0CMTk
Wabash canonball in the rear. Indeud. Hope your day is going as good as mine.
Please mr untied steaks, don’t hurt the rates companees! I needs to know how good my bond vestments is that payz me all that good interests.