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Apparently the U.S. Justice Department was already looking at S&P before the S&P downgraded U.S. debt from AAA to AA+ earlier this month. It is unknown whether the U.S. Justice Department is also investigating other rating agencies, like Moody’s and Fitch, both of which confirmed the U.S.’s AAA rating after the debt ceiling issue was resolved. Read the full story here.
Interestingly, when S&P downgraded the US, BMO Financial Group’s chief economist Sherry Cooper said she believed there was more to it than just a simple downgrade. In The Bottom Line, Cooper said:
“S&P may be covering itself after doing so poorly during the housing meltdown. If they are right, they can’t be blamed for not having seen the risk this time. And if they are wrong, they can say their warning caused the Congress to do the right things to avert a catastrophe. It’s Chicken Little claiming that his warnings stopped the sky from falling. Because of its damaged reputation, the risks S&P faces are not symmetric, and the lack of symmetry will bias the ratings it issues toward ensuring it doesn’t miss another problem. The upshot is that false positives, as I believe this is, will be much more likely.”
These are the same scam artists that failed to downgrade Enron and Worldcom AND also gave AAA ratings to KNOWINGLY fraudulent mortgage securities, but all of the sudden we should start taking them seriously once they down grade the US credit rating? These companies are a joke, or better yet, nothing short of economic terrorists. They commit fraud in broad daylight on a MASSIVE scale, and after the dust settles and regulators start to pry, they start tanking the whole economy to get them off their backs. Talk about a new world order. The US government can no longer control the monster they created after deregulation during 1999/2000.
These are the same scam artists that failed to downgrade Enron and Worldcom AND also gave AAA ratings to KNOWINGLY fraudulent mortgage securities, but all of the sudden we should start taking them seriously once they down grade the US credit rating? These companies are a joke, or better yet, nothing short of economic terrorists. They commit fraud in broad daylight on a MASSIVE scale, and after the dust settles and regulators start to pry, they start tanking the whole economy to get them off their backs. Talk about a new world order. The US government can no longer control the monster they created after deregulation during 1999/2000.
Bankers: 1
US Government: 0
Bankers win. They are putting the screws to the US and they can afford to with emerging countries and their blossoming middle class who have no debt yet.
Correction: They created that monster in 1913 with the creation of the Fed. We're coming up to the 100th anniversary soon..did they have a goal ?
"Mainstream Republicans" Toyman can get things done. TPs can't. Try proving me wrong, name one piece of legislation they have actually implemented (not just discussed), and do so w/o any excuses if they have not implemented anything.
We are a mainstream nation.
More like a "mainline" nation that mainlines credit crack and "give it to me" heroine. Addicts, plain and simple.
(Reuters) - The United States will likely suffer the loss of its triple-A credit rating from another major rating agency by the end of this year due to concerns over the deficit, Bank of America Merrill Lynch forecasts.
Well, well, well, it looks like things are coming full circle now, doesn't it?
It's already junk status, the ratings are joke. What we have is the proverbial man who jumped off the 100th floor building, and is asked how's he doing so far as he falls past the 50th: so far so good.
It's coming pretty soon when Americans will deal with massive economic corrections that will make take the great out of the great depression.
The question is what will happen? Will this country continue patched together by bandaids or will it break into pieces. Personally I hope it shatters.
yes indeed. the spending has not stopped. no austerity measures, so you adjust the credit rating.
standard banking procedure.
strange thinking. banks make loans, our government demands they loan to bad risks. the government accuses them of discriminating against poor people. the banks comply. the banks fail. the government becomes poor, the banks label them a bad risk. the government feels the banks are discriminating against it. .
The spending has stopped. Things are in free fall. This is supposed to be a civilized country. Any less spending and we may as well start evacuating Americans to some less deadly place to live... like Cuba. Demand that banks loan to bad risks??? Sigh... I can't go there today, but you are wrong. Banks were deceived by mortgage brokers but they were VERY aware of what they were doing when they were selling their toxic assets bundled up with some good stuff to make the package enticing. Rich people screwing other rich people.... but poor people get to make everyone whole? Sounds like the plot of a science fiction novel.
The spending has stopped. Things are in free fall. This is supposed to be a civilized country. Any less spending and we may as well start evacuating Americans to some less deadly place to live... like Cuba. Demand that banks loan to bad risks??? Sigh... I can't go there today, but you are wrong. Banks were deceived by mortgage brokers but they were VERY aware of what they were doing when they were selling their toxic assets bundled up with some good stuff to make the package enticing. Rich people screwing other rich people.... but poor people get to make everyone whole? Sounds like the plot of a science fiction novel.
H
Yes, those mortgage lenders. In 1986, we {spouse & me} applied for a home loan, I was self employed driving packages all over the place. During the process, it felt like we were under the microscope, the lender wanted to know everything. Fast forward to 1992, we applied for a home equity loan to make some improvements, all of a sudden, no problems. I was flabbergasted that hardly any questions were asked about employment or wages. All of this lending for the home equity took place in a cubicle about 5 feet by 7 feet in size, no computers, just phones and fax machines.
I thought the process was shady.
Who knows what goes on behind bankers and mortgage lenders doors.
I was flabbergasted that hardly any questions were asked about employment or wages. All of this lending for the home equity took place in a cubicle about 5 feet by 7 feet in size, no computers, just phones and fax machines.
I thought the process was shady.
They knew everything they needed to know: how much your house was worth. Truth be told, they wanted you to default. Nothing personal. Sold at auction your house would make them more money, faster, than waiting 15 years for you to pay it off the hard way. Then the real estate bubble burst. Instead of popping Champagne corks when an account went into default, they were popping Exedrin for Migrane. Even now, it is very difficult for homeowners to fight foreclosure, the banks still prefer to kick you out and take their chances on the real estate market.
And I bet most all the executives have been through at least one audit since the downgrade. When you displease or annoy the feds bad enough that's what happens, all of a sudden you've got federal alphabet soup pounding on your doors with a proverbial proctoscope.
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