S&P Under investigation bu US authorities

New york Post just released the news that the S&P rating company is under investigation by the US Department of Justice.
Funny that the only rating company to lower the US debt Rate from AAA to AA+ is now under such a hard invetigation and probably the US government will find enough material to take them to court.
For me this is pure and simple retaliation. Is the way of Obama's saying don't mess with me...

I don't have proof, as I'm just expressing an opinion which of course you have the right to disagree.
I also agree with you that President Obama is that kind of person, or have that kind of action line, however the momentum of the Investigation makes me wonder about it.
Again I agree, that the rating agencies, sometimes act by some rules that can be very unclear.
And for sure that the department of justice will find some ground to take them to court about this mortgage ratings that they have done.
I don't have any proof on this, but all organizations have dirt under their carpets, and S&P is not an exception, the question is if someone is willing to dig enough

This all has to do with one thing. It is much easier for the DOJ to take one corporation into court rather than millions of liars for the fraud they did when they signed the loan papers.

just remember the song from the movie....
"...money makes the world go around..."
and money shouts, it dosent speak

And money stutters <g>

just remember the song from the movie....
"...money makes the world go around..."
and money shouts, it dosent speak

No, no - put the millions in jails -- gets us out of the unemployment slump <smile>.

This all has to do with one thing. It is much easier for the DOJ to take one corporation into court rather than millions of liars for the fraud they did when they signed the loan papers.

By this investigation US government only blocking or warning two other rating agencies Moody's and other to rate down them. In complicated legal society this is most possible way of civilized tyrannical move.

But most european rating agencies already highly critical of US economy that while US agencies keep throwing down slower eu economies down to junk status their own economy is miraculously in perfect rating status against their real current position which proves that US rating agencies are some active political tools to play around with others.
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Mandtugai!

Of course the problem with the European rating agencies is that Euro zone finances are not exactly AAA either.

But most european rating agencies already highly critical of US economy that while US agencies keep throwing down slower eu economies down to junk status their own economy is miraculously in perfect rating status against their real current position which proves that US rating agencies are some active political tools to play around with others.

Of course the problem with the European rating agencies is that Euro zone finances are not exactly AAA either.

But most european rating agencies already highly critical of US economy that while US agencies keep throwing down slower eu economies down to junk status their own economy is miraculously in perfect rating status against their real current position which proves that US rating agencies are some active political tools to play around with others.

The Eurozone has the finance capability of paying the debt.
When you have a common currency the country no longer controls liquidity so the money must come from the EU Central Bank.
Is like in the US, one of the solutions for the crisis will be flood the economy with currency.
However the president of UE central bank as a different point of view. He is more interes in controlling inflation at all costs, even if it just blocks EU Eurozone Economy from growing.
The Euro is artificially high against the us dollar, this is causing problems one is with the price of oil, as the oil coutry producers try to compensate the FX effect by keeping the oil barrel overpriced other as to do with the export growt, as Euro is to high, exports will be more expensive. for small coutries like mine, that don't export a lot of high added value products this iskilling our industry and economy.

As does the US -- but both entities have political problems. For the Eurozone not only do you have a number of countries with very real debt issues, but also, because of the structure of the EU, the ability to deal with the problems is constrained by the requirement of multi country consensus. You can add to that the issue of an aging population which requires an increasing proportion of the various national budgets to support that population. It would be far worse in the EU if they had the vastly more expensive and less effective for profit health care industry that mars the US financial picture.

For the US, the seriously broken political environment which includes one exceptionally clueless political party (particularly on financial matters) that seeks power by disruption, makes for a very cloudy economic picture (and therefore a difficult budget picture). Add to that the seriously expensive for profit health care 'system' and, even though the demographics of the US are not as bad as that of Europe (in terms of the aging of the population), there are significant challenges, which absent demonstrable political will (or rather, the intentionally disruptive political *won't*) make for a dismal picture.

The Eurozone has the finance capability of paying the debt.

s&p gave Countrywide a AAA rating months before the subprime market inploded
in 2008. where was the exhaustive research?

Since then Bank of America bought the hobbled Countrywide.
in the last few days Bank of America was sued for 6 billion for what the plaintiffs called Countrywides untruthfulness in the subprime market.

had S&P actually done the research they said they did would the mess been discovered earlier? maybe.

speaking of momentum of the investigation.....2008 to 2011 three years its taken....thats some slow momentum...especially to the retirees that lost
their investments and savings when the economy tanked.
S&P's rating system has long been suspect, there are
other rating agencies that did not downgrade US debt.

Moody's for one actually downgraded some of the subprime mortgage lending companies in 2006. where was S&P at this time? taking "commissions"...
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