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AKA: JUST MORE WALL STREET SHENANIGANS!
Hopefully, you haven’t been running around with your hair on fire, screaming THE SKY IS FALLING, THE SKY IS FALLING!!! Because, guess what? It ain’t! Standard and Poors is just another Wall Street “institution” that says, and does, what it wants to, in order to suit their own – and certain benefactors’ – needs.
A great article on AlterNet explains:
“Most people believe that the ratings agencies base their analyses on some set of cold, objective criteria, but that’s not the case. A group of Wall Street analysts . . . get together and discuss various factors, including, in this case, the political scene, and come to a consensus.”
And, that: “According to a Senate investigation concluded earlier this year — a probe that was greeted with a collective “ho-hum” by the corporate media — S&P and Moody’s, another leading agency, “issued the AAA ratings that made … mortgage backed securities … seem like safe investments, helped build an active market for those securities, and then, beginning in July 2007, downgraded the vast majority of those AAA ratings to junk status.” And when they did, it “precipitated the collapse of the [mortgage-backed securities] markets and, perhaps more than any other single event, triggered the financial crisis.”
So, some of the same guys who told all of us that everything was A-Okay with those (questionably) mortgage backed “securities” – because it benefited their golf buddies – are now telling us that The U.S. might not be able to meet it’s future obligations??? They have already proven to be un-objective, untrustworthy charlatans, but most of us were unaware of the Senate investigation’s findings. And, our collective memories are so short these days, that even those of us who were in the know have either forgiven or forgotten.
This is all politically motivated by the big HAVES, at the expense of the rest of us, the have NOTS. But, I think that all of you are better off getting the full benefit of the article by . . . reading the article.
So, here it is:
Don’t knee jerk. You’ll only regret it, while someone – who was already much better off than you – laughs all the way to the bank!
— YUR
Related articles
- S&P’s History of Relentless Political Advocacy (news.firedoglake.com)
Unclerave's Wordy Weblog 
It’s a big mess! But this too shall pass…My husband keeps that stock channel on all day in his workshop. We read articles, listen to more than one cable news network, and then you know what we do? We watch this video on http://www.youtube.com-“A Lot to Drink About” by Jimmy Buffet in Key West, and then we head to the beach and throw down the margaritas at Martell’s in Point Pleasant Beach! P.S.-We also shove the $$$ under the mattress!
Will it really “pass” though? Unfortunately, the market spoke yesterday. Depending on how things go forward, this *could* be the HAVES knockout punch. They did their most damage when they pulled the rug out from under us in 2000, in what they now, euphemistically, refer to as the “Tech Bubble”. That probably resulted in THE biggest transference of wealth in our lifetime, and maybe of all time. Then they did it to us again in 2008! (Gee. Do you think it’s just a coincidence that these two wealth transference events bookend the G. Duh-bya two terms?) And now, the same people who helped facilitate the 2008 fiasco have downgraded U.S. Debt, for political reasons that *clearly side* with the HAVES, who are predominantly on the Right.
Putting your $$$ under the mattress might be the safest bet these days. Especially, if you were fortunate enough to get out of the market in the last month, or so. Much less so, if you did it yesterday.
— YUR
It’s sickening to see that S&P can have the shameless audacity to downgrade the US, being that they are the same ones who gave a clean bill of health to the toxic mortgage securities that got us into this hell hole. However, there may be light at the end of the tunnel; as Boehner has pompously announced that he is “pretty happy” having gotten 98% of what he wanted in this ridiculous deal, perhaps it will become clear to those who are still unwilling to listen to reason that he, along with his tea party nuts are responsible for the downgrade. Afterall, S&P cited, among the reasons for the downgrade, political climate (read ‘hyperpartisanship’), fiscal situation (no tax increases). Am I overly optimistic?
Overly optimistic??? I won’t say yes, and I won’t say no, Pat. My problem is that – mainly due to the corporate media spin machines – people hear what they want to hear. Most of the FOX News/Tea Party crowd have already convinced themselves that they are – somehow – a positive agent of change. S&P was upset that we settled on the $2.4 Trillion in spending cuts, and were in favor of the $4 Trillion that the Republicans were looking for. And, of course, they are not in favor of increased taxes for corporations and the rich. It was an incredibly partisan motivated move. They should be ashamed of themselves. They should apologize for the downgrade. And, they should reverse it.
— YUR
Some spammer brought this old post to my attention. It’s not half bad, if I do say so myself. If you haven’t seen it yet, go out and watch “The Big Short”. It’s a really excellent movie, that shows how bad the entire investment industry really was/is.
— YUR
Reblogged this on Unclerave's Wordy Weblog and commented:
In the spirit of tonight’s Academy Awards Show I’m reposting this piece from August 2011. Why? Because The Big Short is one of the Oscar contenders for Best Picture. I think there might be a Best Actor and Best Supporting Actor from that film as well. Anyway, it’s a great movie! I also saw Bridge of Spies and The Martian. Both great Best Picture contenders. Plus, I also saw Trumbo. Another fine movie that probably would have benefited from a little more editing. Anyway, enjoy! — YUR