posted by King Minos in Money / Career

S&P Faces Music? Buffet Skates?

February 5, 2013

“This market is a wildly spinning top which is going to end badly,” one executive wrote in a confidential memo.
The account, culled from reams of internal e-mails, is part of civil fraud charges that the Justice Department filed late Monday against S.&P. in federal court in Los Angeles, accusing the firm of inflating ratings of mortgage investments and setting them up for a crash when the financial crisis struck.

Of course, the problem for the Feds is how to prove the rating firm s were criminally negligent. After all, a credit rating, what ever it is based upon, is but a mere opinion about the state of things!

Here again, the Feds are going in wanting a bunch of money from the S&P which is actually owned by McGraw-Hill. I'm betting they are going to get it because those folks would rather pay, than go to jail! In fact, the Holder Justice department has racked-up tons and tons of money paid by Wall Street elite in return for a slap on the hand and, perhaps, a reminder to give a lot of money to the Obama re-election campaign!

What about Moody's -- controlled by the Oracle of the Plains during the go-go years of rating junk as "AAA" and earning hefty commissions for the tom-foolery?

Well. In truth, Warren Buffet has sold-off shares in the ratings company since the mess hit the fan; strategically, it leaves him now able to claim he wasn't associated with Moody's mess! And no one should forget, either, that Buffet, with great fanfare, was one of Obama's stage stooges with the folksy tale about Warren and his secretary's tax rates!

What about Fitch? Well, who did they contribute to in the last election?

Now maybe Holder and the PBO White House are going after S&P, first, as something of a test case. More likely, however, what we see is the rising fascist power of the Obamanites as they use state power to punish political enemies; while leaving the pro-Obama companies, and personalities ALONE!

Thanks for all the help, Warren!

Anytime, Mr. President! Laughing out loud

Q: But don't all Presidents -- Republican and Democrats -- sometimes use the power of government to reward friends and punish enemies? Why single out PBO and Holder?

A. First, we will have to wait and see if Moody's is treated the same; and/or if Warren Buffet is specifically excluded from culpability.

Q. Hey, wait! Even if Buffet made A LOT of money when Moody's was churning-out bad ratings, why was he responsible. After all, he didn't know things were going to end badly!

A Well, Warren is not big rich for nothing; and there is a reason he is called the Oracle or Sage of the Plains ... He is on record talking about his fears, including calling derivatives "weapons of mass destruction." Likely he had a good idea what was going to happen; and with that knowledge he made a great pile of money and it was at the expense, really, of all members of the public who have suffered so much since the beginning of the financial crisis. He knew! He profitted on the disaster! Then, he sought to cover his tracks by selling shares in Moody's and talking about his secretary's tax rate! He should be punished!

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