Thursday, August 18, 2011

The S&P MBS Investigation Is Not "Politics"

Despite the spin from Hot Air and a few others, Justice's query into S&P's mortgage-backed-securities ratings is not "political payback."

And it's very specific:

...the Justice Department has been asking about instances in which the company’s analysts wanted to award lower ratings on mortgage bonds but may have been overruled by other S.& P. business managers, according to the people with knowledge of the interviews...

How-some-ever, Roscoe...

This will be "political" if Justice does NOT give Moody's the same rectal.


J. Strupp said...

Yeah S&P is something else. Sure got that AAA U.S. downgrade right.

Investors are so scared of U.S. debt after that downgrade that we can now borrow for 10 years at below 2%.

Below 2% nominal! IOW, the world is PAYING us to issue long term debt.

Cut that deficit. Hyperinflation is upon us. It's coming. Really. Really it is.

Dad29 said...

Yah, I know. Only the suckers who buy food experience inflation, so to hell with them.

And "bubble cash" has to go someplace, my friend. It ain't going to Dow/S&P.

J. Strupp said...

Yeah well my bubble cash is going towards that bombshelter I put off building in the backyard back in Sept. 2008. From here it looks like it might be time to dust off the blueprints again.

I've got this bad feeling that old man market is punching our clock right now.

You have any ammo to spare over there dadster?