As anticipated, the Department of Justice is now suing S&P over its alleged contribution to the mortgage crisis.<\/p>\n
http:\/\/online.wsj.com\/article\/SB10001424127887324445904578284064003795142.html<\/p>\n
The details surrounding the mortgage debacle has been well chronicled in previous posts. While it’s obvious that S&P’s risk assessment models were flawed, there is no evidence to suggest that the rating agency deliberately<\/em> misled anyone. The real issue is is political, and the point here is to establish corporate America–not Washington–as the villain, and send a message to anyone who might challenge governmental authority. Unfortunately, S&P will probably negotiate a settlement rather than fight, which will further underscore the threat.<\/p>\n If the DoJ is going to due S&P, there are some other culprits Eric Holder could consider as well…<\/p>\n 1. Congress–for passing the Community Reinvestment Act.<\/p>\n 2. Freddie & Fannie–for exacerbating the subprime problem.<\/p>\n 3. Barney Frank and Chris Dodd–for misrepresenting the financial integrity of Freddie & Fannie.<\/p>\n 4. Obama–for expanding the national debt at an unprecedented pace.<\/p>\n 5. The Fed–for instigating the entire problem from the outset by, among other things, pushing people into houses and bigger houses by keeping mortgage rates artificially low.<\/p>\n","protected":false},"excerpt":{"rendered":" As anticipated, the Department of Justice is now suing S&P over its alleged contribution to the mortgage crisis. http:\/\/online.wsj.com\/article\/SB10001424127887324445904578284064003795142.html The details surrounding the mortgage debacle has been well chronicled in previous posts. While it’s obvious that S&P’s risk assessment models were flawed, there is no evidence to suggest that the rating agency deliberately misled anyone. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/battle4liberty.com\/index.php?rest_route=\/wp\/v2\/posts\/610"}],"collection":[{"href":"https:\/\/battle4liberty.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/battle4liberty.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/battle4liberty.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/battle4liberty.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=610"}],"version-history":[{"count":0,"href":"https:\/\/battle4liberty.com\/index.php?rest_route=\/wp\/v2\/posts\/610\/revisions"}],"wp:attachment":[{"href":"https:\/\/battle4liberty.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=610"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/battle4liberty.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=610"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/battle4liberty.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=610"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}