Whats Bigger Than a $1.4 Billion Mortgage Ratings Scandal?
invite response
2015 Jan 27, 2:46pm 825 views 3 comments
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1
FortWayne
2015 Jan 27, 2:57pm
FortWayne
2015 Jan 27, 2:57pm
You know, this is really sad. If in last 10 years we did exact opposite of S&P told us to, we'd all be millionaires right now.
To be fair, I never cared for S&P as I'm not a professional investor anyway.
2
HydroCabron
2015 Jan 27, 3:11pm
HydroCabron
2015 Jan 27, 3:11pm
Here is the truest thing you will ever read on Patrick.net:
Buying individual stocks is a fool's errand.
3
Entitlemented
2015 Jan 27, 3:17pm
What about the Clintons, their friend at Freddie, Fannie, Countrywide.
Note, a Clinton campainer went from FHA to Countrywide:
http://www.nytimes.com/2008/10/19/business/19cisneros.html?pagewanted=all&_r=0
This ponzi scheme created a ~ 5 Trillon $ bubble.
On January 21, one of the biggest financial lawsuits in recent history came to a costly end. The accused, ratings behemoth Standard & Poor’s, agreed to a $1.4 billion settlement for “inflating credit ratings on toxic assets,” thus accelerating and exacerbating the 2008 subprime mortgage crisis.
Settlement aside, there is a far bigger issue here than business ethics or conflicts of interests, which is not likely to get a hearing in the court of mainstream finance.
Which is: The professionals who are supposed to assess investment risks are no better at it than you or I.
Case in point: Think back to November 30, 2001. The world’s largest seller of natural gas and electricity has gone from cash cow to dry bone. Its share price had plummeted 99%, from $90 to just under $1. YET– the company continued to enjoy an “INVESTMENT GRADE” rating.
The company’s name: Enron. Four days later, it filed for the largest bankruptcy in U.S. history.
http://www.globaldeflationnews.com/whats-bigger-than-a-1-4-billion-mortgage-ratings-scandal/
#housing