Co-founder and co-editor, The American Prospect
You have to hand it to Standard and Poor’s. Forget their two-trillion dollar math error. The whole idea that these clowns are evaluating the creditworthiness of the United States is just loony.
For starters, these are the same people who brought us the crisis, by blessing junk sub-prime loans as AAA securities. And they did so because they were paid as consultants by the same financial scoundrels who created the securities.
The executives of the credit rating companies — not „agencies,“ for these are private, profit-making, essentially unregulated companies, not public entities — belong in prison.
They managed to slither out of serious regulation under the Dodd-Frank Act. Their sketchy business models go merrily on, pretty much as before, as if the sub-prime scandal never happened. Rules for the minimal regulation provided by Dodd-Frank have yet to be written.
(…) So exactly what esoteric insight does Standard and Poors add that the markets don’t already know? It beats me.
Their enterprise is so scientific that the three major credit rating companies can’t even agree on a rating for theU.S.They should take up astrology.
This sorry tale is part of the larger corruption of private regulation of the world’s financial markets. Greece, Italy, Spain, Ireland and Portugal are under assault today in part because large hedge funds are gambling, using essentially unregulated credit default swaps, often „naked“ swaps backed by no reserves, betting that these nations will default…
Bankers Launch Next Leg Of Planned Economic Collapse
The next leg of the planned economic collapse has now been launched with the stock market once again plunging as the Federal Reserve prepares to launch QE3, and it’s all part of the transfer of wealth from America to the offshore elite that we have been warning about for years.
As we highlighted over two years ago, shortly before Barack Obama declared the recession to be over and the stock market was artificially inflated once more, we warned that the next phase of the financial pillaging would bring about a “sucker’s rally,” with investors believing the hype about a non-existent “recovery” and ploughing all their money back into the system, only to see the rug pulled out from under their feet for a second time.
Italy probing rating agencies
ROME– Italian prosecutors are investigating two leading credit rating agencies after consumer groups complained about turbulence on financial markets, officials said Thursday.
Recent reports and rating decisions issued by Moody’s and Standard & Poors amount to a „failure“ of judgment regarding Italy’s government finances, prosecutor Carlo Maria Capristo told Italian broadcaster Sky TG24 TV.
The ratings agencies „have lost all credibility,“ Elio Lannutti, head of the Adusbef consumer group told Sky TV.
Standard & Poors said the accusations were unfounded.
„S&P considers the allegations being investigated are without any merit. We will vigorously defend our actions, our reputation and that of our analysts,“ said a statement from the ratings agency.
More Violence In London And Now Birmingham
Rally Rage: ‘Israeli Tahrir’
Pollster: Americans Are “Pre-Revolutionary”
Amidst riots in central Europe that have now spread to London and a debt downgrade that threatens to plunge the United States into a double-dip recession, Americans’ lack of confidence in their leadership is so crippled that they are now “pre-revolutionary,” according to pollster Pat Caddell.
A new Rasmussen poll shows that just 17 per cent of Americans believe that the U.S. government has the consent of the governed, an all time low. This dovetails with a record low for Congress’ approval rating, which stands at a paltry 6 per cent, while 46 per cent of Americans think most members of Congress are corrupt, with just 29% believing otherwise.
China is demanding “international supervision over the U.S. dollar” and says they are looking at the option of creating a new single global currency to replace the dollar altogether. With no where else to put all of that money China will be forced to invest it into a one world currency.
октобар 20, 2009
by Andrew Gavin Marshall
Global Research, October 3, 2009