I laughed out loud when I read the headline in The Wall Street Journal on Monday, February 5, 2013. It read "U.S. to Sue S&P Over Ratings." Supposedly the reason for this suit was because S&P gave good ratings to bad lenders, causing the 2008 financial crisis. It's a great case of those in government trying to blame those in the free market for the problem they caused. But frankly, as S&P and everyone else knows, this lawsuit had nothing whatsoever to do with the 2008 financial meltdown. In reality, it was a message as subtle as the horse's head placed in the bed of fictional Hollywood director Jack Woltz, who refused to cast Johnny Fontane in his new war film. It was a "we know where you live" gift from mob boss Don Corleone to intimidate Woltz into reconsidering his choice. This lawsuit is dirty Chicago style at its best (or worst). Obama and his White House cronies don't hesitate to use the Department of Justice (DOJ) to play political hardball.
The other big ratings firm is Moody's, but it was not hit with a similar lawsuit even though it, too, gave good ratings to lenders who later became insolvent. Such a lawsuit is unprecedented and without any substance, but frankly, the government already accomplished its real goal. The suit not only hurt the value of S&P stock (and thus stockholders), but also sent a stern message to S&P, Moody's, and the other ratings firms . The suit was a warning that if you mess with the Chicago thugs in the White House by downgrading US bonds (the real reason for the suit), you will pay a heavy price. Essentially, S&P had a horse head placed in their bed by the Chicago thugs at 1600 Pennsylvania Avenue. It was payback time for S&P who downgraded the US credit rating, due to the irresponsible spending and borrowing practices of the current administration. Everyone knows that the situation has only gotten worse since the S&P downgrade (from AAA to AA+) in August, 2011. Anticipating another downgrade in 2013, the DOJ lawsuit was simply a preemptory move to scare off any further downgrades, and/or to discredit S&P. Nothing, absolutely nothing, is beyond the bullies in the Obama White House.
The Obama lawsuit against S&P would make Hugo Chavez and Fidel Castro proud. The United States of America is fast becoming a banana republic under Barack Obama. The O man and the Chicago thugs he has assembled as his White House team ignore Congress, ignore the rule of law, and ignore the United States Constitution. Whatever they say goes and to hell with the law and the Constitution. Sadly, they do it with the full compliance and cover of the robots in the so-called mainstream media.
But there is one more aspect to this matter. It is another case of rewriting history, of blaming others for what they are clearly guilty of—causing the current financial mess. How about a little timeline to set the record straight…
1977—At the urging of then President Jimmy Carter, a Democrat controlled Congress passes the Community Reinvestment Act (CRA), an act supposedly designed to help low income families obtain low cost mortgages, among other things. It was signed by President Carter on October 12, 1977.
1992-93—It is later modified to make lending easier for low income families under President Bill Clinton, with leadership in the Senate provided by Christopher Dodd, and in the House by Barney Frank. This was the first step in saddling low income families with houses funded by loans that they could not afford.
2001—President George W. Bush issues a warning to Congress of an impending financial crisis. However, the Democrats controlling Congress deny there is any danger and refuse to act to rein in Fannie Mae and Freddie Mac, who have become corrupted by the political process.
2005—Barney Frank, chairman of the House Finance Committee, states, "There is no housing bubble!" You can watch him declaim any danger from a housing bubble at www.youtube.com/watch?v=3HhOh5lTahI
2000-2008—The Wall Street Journal begins sounding warnings—week after week, month after month—that a housing bubble was in the making and a crash was imminent. Congress continues to ignore these warnings.
2008—The housing bubble bursts, saddling taxpayers with more than a trillion dollars of debt and pushing the US into a deep recession that continues to this day.
2011—Reckless Endangerment is published by New York Times financial editors Gretchen Morgenson and Joshua Rosner, exposing the corrupt relationship between the Democrats in Congress and Fannie Mae and Freddie Mac. The authors describe in detail the willing manipulation of members of Congress. A willing participant in the process is Barney Frank, who looked the other way as sub-prime loans were pushed to generate huge bonuses for his friends at Freddie Mac. Fannie and Freddie push bundled loan packages that include high risk loans that are likely to default. They do this with a wink and a nod that the federal government will cover any losses.
Now, of course, the Democrats and their robotic friends in the mainstream media (MSM) blame Bush and the Republicans for the mess they created. The problem is supposedly not enough regulations, even though the facts show that it was cronyism between a Democrat-controlled Congress and Freddie and Fannie that initiated the massive economic crisis.
Well, as Shakespeare said, "The truth will out." Lies have a way of indicting those who speak them. The more brazen and outrageous the White House becomes in flaunting the law, circumventing Congress, and generally engaging in corrupt practices such as "Fast and Furious", the more likely it is that their house of cards will come tumbling down. Stay tuned…