Two high profile rating agencies had a hand in the foreclosure crisis being hand in glove with the investment banks
Julie Thompson
The revelations of the high profile rating agencies of Moody’s and Standard &Poor were outrageous and depressing. Their link with Wall Street scandalous activities that led to the foreclosure cum financial crisis is grave. Not only were they incompetent but they seemed to be hand in glove with the investment banks by wrongly evaluation the latter’s bonds.
For instance it is ridiculous but true that they gave A.A.A ratings (the highest) to weak mortgage backed securities whose toxicity caused the entire global economy to collapse. None will trust the ratings of these foolish entities. This will lead to the birth of new agencies without a scarred past. But none has known any Wall Street agency to apologize for any wrongdoing - no matter how grave.
It was amusing to observe Standard & Poor to venture brazenly into the political arena and give out a warning about the future health of the government of USA if a long-term deal on deficit budgeting was not reached. Here again S&P was parroting the wishes of its masters in the corporate world. The latter are frowning about the imminent fight on debt -ceiling. They do not care for the financial reforms of the Obama government and his restated wish to bring back the tax rates for the super rich to the severe modest levels that had been set up in the 90s during the time of the Clinton rule.
With S&P giving out a warning, the stocks dived but the bond market remained steady as was the Obama government.
The timing of this warning given by S&P draws curiosity as it is ironic. Despite all the typical political yapping at last the heads of the nation have stumbled upon a solid discussion regarding deficit problems being a long-term issue. Solid proposals are coming forth and solid talks are being held.
For this Congressman Republican Paul Ryan has to be thanked. He came forth with solutions to the deficit problem that was laughable, unsteady and unjust. However it was admittance by the Republicans, after a long gap, that merely snipping spending would not be sufficient to make an impact on the long-term deficit and secondly that the problem is not related only to Obama team. Ryan raked up untouchable topics like entitlements and subsidies to farmers. He did a real service to the public also by indirectly endorsing many of the cuts in Medicare that had been included in the health reform act of Obama in 2010.
Julie Thompson, has been working on ForeclosureListings.com studying the foreclosure market, helping buyers on the finer points of Springdale foreclosure listings. Try to visit ForeclosureListings.com and find all related information about Foreclosure Listings.
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