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The looting classes start to throw each other under the bus

U.S. Inquiry Is Said to Focus on S.&P. Ratings. Sure, S&P caused Obama some ego damage, so he's pointing Holder at them. But Obama wouldn't be doing that unless his owners allowed him to.

So, I'm picturing Dimon and Blankfein and Moynihan, testifying before Congress on the teebee: "We didn't know! We were deceived! Those darn ratings agencies, we should never have entrusted our reputations to them!"

Of course, the accounting control fraud is systemic -- it's not within institutions, but between them. They're all in on it, including the stern-looking Congress critters up on the dias. "Kleptocracy on The Orient Express...."* The difference being, of course, that in the movie, the characters never betrayed each other. How unlike real life!**

NOTE * I crack myself up!

NOTE ** Sayeth the banksters to the ratings agencies: "I don't have to run faster than the bear, I just have to run faster than you..."

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okanogen's picture
Submitted by okanogen on

According to Economics of Contempt who worked with them, S&P is stupid.


With S&P, it got to the point where we were constantly saying, “that’s a good point, but is S&P smart enough to understand that argument?” I kid you not, that was a hard-constraint in our game-plan. With Moody’s and Fitch, we at least were able to assume that the analysts on our deals would have a minimum level of financial competence.

I’ve seen S&P make far more basic mistakes than the one they made in miscalculating the US’s debt-to-GDP ratio. I’ve seen an S&P managing director who didn’t know the order of operations, and when we pointed it out to him, stopped taking our calls. Despite impressive-sounding titles, these guys personify “amateur hour.” (And my opinion of S&P isn’t just based on a few deals; it’s based on countless deals, meetings, and phone calls over 20 years. It’s also the opinion of practically everyone else who deals with the rating agencies on a semi-regular basis.)

It is really apparent that the same 'elite' that staff our media outlets, staff many other sectors of our society.

MsExPat's picture
Submitted by MsExPat on

When I read that, it all became clear. This is Obama's payback to S&L for dissing him. It's meant to make trouble, and maybe embarrass a few people. But nobody's going to be wearing orange jumpsuits.

In other words, this is bullshit.