The S&P Smackdown

As Dean Baker points out, yesterday’s stock market decline was likely due to poor earnings reports from Bank of America ( Friday) and Citigroup (Monday). Not from S&P. Future profits for our bailed-out banks don’t look so good.

More Baker:

It is also worth noting that S&P has a horrible track record for judging credit worthiness. It rated hundreds of billions of dollars of subprime backed securities as investment grade. It also gave Lehman, Bear Stearns, and Enron top ratings right up until their collapse. Furthermore, no one was publicly fired for these extraordinary failures. Investors are aware that S&P’s judgement does not mean very much.

Why can’t we hang these banks out to dry?

How come Wall Street’s own kiss ass ratings gang whose heads were deep in the sand when the recession began,now rise from the sewer to run the nation’s finances. What about investigating S&P’s role in the recession?

5 responses to “The S&P Smackdown

  1. “Who Paid Standard & Poor’s?”
    (Their credibility is gone. So is Rant Paul’s))

    Who paid S & P to say what they “thought”?
    Who thought they’d be credible? Why are they still here?
    Why weren’t they closed down when they first screwed up?
    Who needs them to tell Rant his head’s up his rear?

    Tea Party rallies face dwindling attendance
    As the public sees toilets are what Rant’s all about.
    But if Rant filibusters an increase in the debt,
    S & P’s iPad projects a final sellout.

    The Hatfields and McCoys will make the arrangements.
    It wouldn’t be that long before he was gone.
    Why should one person be allowed to wreck havoc?
    How much better to need a new Senate walk-on.

    But when can we cure Wall Street of Standard & Poor’s?
    Were they pressured again by big banks running scared?
    Can they frighten both parties into reacting
    To make sure another bank bailout’s prepared?

    Bob Carlson
    On Twitter @PBoondoggles


  2. Bankers !! Ah yes . I often wonder if the break down of banks was not a deliberate act. These people are not stupid as we all well know. If you create a lot of extremely wealthy idividuals and millions on the edge financialy you have an amazing level of control over people , push them off the edge into unemployment and on to the bread line you have total control.
    Those who believed in the bubble and bought into it, forgot to look at history and failed to do simple sums. The bankers are not stupid, they had been well aware millions would take up the bate. In adition to taking the bate millions of people around the globe have stood by, and let our governments use our taxes to shore up criminals.
    Not content with that, we stand by and let the banks carry on as if nothing has happened. It is usual if someone “”rips you off””, that you do not deal with them again but, HEY HO we continue to use the banks who caused the mess we currently live with, and will have to live with, until we use our “”shopping power”” to send these clever people a very clear message “”THAT OUR MONEY “”is not deposited with them to gamble with.!!
    The stock market is the gamblers paradise, merchant banks and the good old Casino, that should be enough for them . However it would seem enough is never enough for these bright sparks, they trade in your depts. They actualy trade in pure fantacy = callapse of the financial system. A game they invented to keep themselves busy making more dept. Banks do not stand up to close inspection, and are so rarley inspected therefor have become a law unto themselves and continue to be until we “”stop”” useing them. We need to go shopping for a bank with a great deal more care, ones that do not gamble and put customer care and financial good sence first ,they do exist it is up to us to find them.
    Happy shopping !!

  3. Carolyn Caffrey

    Actually some of the best (and most frightening and infuriating) information I’ve seen on this whole disaster was produced by your colleagues at Mother Jones in their Jan/Feb 2010 issue. Particularly horrifying is the level of money actually used to bail out Wall Street beyond the $700 billion TARP. That was show graphically in this article within that issue.

    I suggest we resurrect this information for public review and start asking some pitchfork questions about why we’re slashing services to the American people who are slipping further and further into poverty while these bloated entities are patting themselves on the backs and giving themselves bonuses. I plan on posting the information widely and encouraging it to be shared. First copy is going to my good Rep. Lloyd Doggett for ammunition.

  4. Carolyn Caffrey

    Actually, probably the better online link is the one to The Accountability Deficit which appears to have links to all the articles.

  5. Absolutely. Thanks for pointing this out.

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