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Obama's S&P Suit Smacks Of Vendetta
IBD ^ | 02/09/2013 | Paul Sperry

Posted on 02/09/2013 5:45:30 AM PST by SeekAndFind

Staring at a another debt ceiling crisis, the president's punishing the one credit rating agency that dared downgrade U.S. debt in the last crisis.

And Wall Street analysts say the timing's no coincidence. Just weeks away from the next debt-limit showdown, the Justice Department filed a whopping $5 billion lawsuit against Standard & Poor's for alleged fraud.

The case appears weak, but the message it sends S&P and the other independent rating agencies is clear: Don't downgrade anymore.

"It's a foregone conclusion that no more downgrades will be coming," said Euro Pacific Capital CEO Peter Schiff. Curiously, Attorney General Eric Holder can't explain why the administration is targeting only S&P in its unprecedented investigation of Wall Street's credit rating industry.

S&P's subprime securities ratings were virtually identical to those of Moody's and Fitch, yet the government's singling out S&P for prosecution.

The reason seems obvious: Unlike Moody's and Fitch, S&P embarrassed President Obama ahead of his re-election bid by downgrading U.S. debt to AA+ from AAA.

The shocking 2011 reduction in the rating quality of Treasuries was the first in U.S. history.

Even so, S&P said it was justified based on the Band-Aid the administration stuck on the huge debt problem, one that now only looms larger.

At the time, Obama was quick to slam S&P's decision. Now many observers say he's getting even by shaking down S&P for billions in subprime securities losses at federally insured financial institutions.

"Given the circumstances and timing of the suit, can there be any doubt that S&P is paying the price for the August 2011 removal of its AAA rating on U.S. Treasury debt?" Schiff asked.

(Excerpt) Read more at news.investors.com ...


TOPICS: Business/Economy; Crime/Corruption; Government; News/Current Events
KEYWORDS: lawsuit; mortgagecrisis; obama; sp

1 posted on 02/09/2013 5:45:40 AM PST by SeekAndFind
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To: SeekAndFind

RE: Unlike Moody’s and Fitch, S&P embarrassed President Obama ahead of his re-election bid by downgrading U.S. debt to AA+ from AAA

And unlike Moody’s, Obama buddy, supporter, and tax hike enthusiast, Warren Buffet doesn’t own a huge chunk of S&P.


2 posted on 02/09/2013 5:47:21 AM PST by SeekAndFind
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To: SeekAndFind
Democrat-created “Community Reinvestment Act” forced the banks to make loans to less than stellar creditors. S&P just reported the obvious result.
3 posted on 02/09/2013 5:49:40 AM PST by Eric in the Ozarks (NRA Life Member)
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To: SeekAndFind

There is no Moody or Fisk 500 index. There is an S&P 500

Contrary to the article, the president has now picked a fight that will be lost with the next downgrade. Unlike the Peter Schiff toady, S&P has real power.

The president was foolish enough to bring a lawsuit to a treasury downgrade fight


4 posted on 02/09/2013 5:55:18 AM PST by bert ((K.E. N.P. N.C. +12 .....The fairest Deduction to be reduced is the Standard Deduction)
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To: SeekAndFind

Ain’t no smacking involved. This is pure balls to the wall get evenness.


5 posted on 02/09/2013 5:58:14 AM PST by upchuck (America's at an awkward stage. Too late to work within the system, too early to shoot the bastards.)
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To: SeekAndFind

What would happen if as a result of this attempted shakedown, all these “ratings Agencies” just FLAT OUT REFUSED TO RATE ALL GOVERNMENT DEBT?? Which is precisely what they should do IMMEDIATELY. Watch this lawsuit evaporate post haste.


6 posted on 02/09/2013 6:03:07 AM PST by eyeamok
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To: eyeamok

You can take the thug out of Chicago, but you can’t take Chicago out of the THUG.


7 posted on 02/09/2013 6:05:05 AM PST by CMailBag
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To: eyeamok

You can take the thug out of Chicago, but you can’t take Chicago out of the THUG.


8 posted on 02/09/2013 6:10:34 AM PST by CMailBag
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To: CMailBag

oops, sorry


9 posted on 02/09/2013 6:11:26 AM PST by CMailBag
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To: SeekAndFind

A socialist using selective enforcement of the law as a weapon against those who oppose him? Inconceivable.


10 posted on 02/09/2013 6:39:41 AM PST by Pollster1
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To: bert

So you say the President is bluffing and S&P will call his bluff with the next downgrade.

Sure will be fun to watch.


11 posted on 02/09/2013 7:03:14 AM PST by Venturer
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To: CMailBag

That was worth a double posting and very true.


12 posted on 02/09/2013 7:03:57 AM PST by Venturer
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To: SeekAndFind

Lord knows how many more of these vendettas 0banana has up his sleeve to distract attention away from hot issues like Benghazi, drone killings and F&F. He just orders Holder to have them cued up for the media when the need arises.


13 posted on 02/09/2013 7:11:32 AM PST by shove_it (Long ago Huxley, Orwell and Rand warned us about 0banana's USA.)
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To: Venturer

———So you say the President is bluffing and S&P will call his bluff -——

No, the president is not bluffing, he is acting foolishly. He has overstepped his bounds.

My reasoning is that at some point sane men will conclude that the abuse of power must be met with real power. The elected politicians are unwilling or unable to exercise their power effectively. There is no effective political opposition.

There is effective market opposition. We don’t know S&P’s supporters but money is at stake. Therefore, there must be several willing to finally engage and use their power.

S&P has the power to influence bond yields and thus force action. The law suit might just force the issue. Downgrade is there waiting for a trigger

It is going to be historically interesting to watch


14 posted on 02/09/2013 7:26:37 AM PST by bert ((K.E. N.P. N.C. +12 .....The fairest Deduction to be reduced is the Standard Deduction)
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To: SeekAndFind

The risk of downgrades is higher interest rates for federal borrowing, right? You can see what a huge threat this is to Obama. Higher interest rates would be put the kibosh on his whole debt-based megaspending and redistribution project. Higher interest rates would stop him more surely than the Republican House can. It’s no wonder Obama would go all Chicago on S&P. They dared put a finger on his Achilles heel.


15 posted on 02/09/2013 7:31:13 AM PST by Yardstick
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To: SeekAndFind

S&P needs to name Obama as a witness, and notice his deposition. How long would it take for the suit to be dropped. You know he won’t sit under oath. The last President to give sworn testimony got hit for $800,000+/- worth of perjury and was a laughingstock for trying to redefine the word “is”..


16 posted on 02/09/2013 7:40:24 AM PST by Go Gordon (Barack McGreevey Obama)
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To: SeekAndFind

The little napolean bastard needs a blanket party.


17 posted on 02/09/2013 8:57:47 AM PST by ronnie raygun (w)
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To: SeekAndFind

S&P is paying the price for honesty,something he doesn’t allow because it can spread if left alone.


18 posted on 02/09/2013 10:02:29 AM PST by Vaduz
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To: eyeamok

Almost right. Just issue a statement:

“Given that the United States Government is in a judicial conflict with Standard and Poor’s over our rating services, it is a conflict of interest for us to continue rating the Bonds of the United States and associated entities, such as Fannie Mae, Freddie Mac, or Sallie Mae, and similar, until all legal issues are resolves. Standard and Poor’s also withdraws all ratings of these issues until resolved.”

And then see if ANYONE buys . . .


19 posted on 02/09/2013 11:12:04 AM PST by Salgak (Acme Lasers presents: The Energizer Border. I **DARE** you to cross it. . . .)
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To: AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; ColdOne; Convert from ECUSA; ...

Thanks SeekAndFind.


20 posted on 02/09/2013 9:35:25 PM PST by SunkenCiv (Romney would have been worse, if you're a dumb ass.)
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To: SeekAndFind

anybody know how this turned out?


21 posted on 11/15/2013 1:36:06 PM PST by AdSimp
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