Posted on 10/23/2008 9:06:23 AM PDT by Liz
Credit-rating analysts saw the housing collapse coming four years ago due to their "house of cards" game - but did nothing because of huge profit windfalls. A House panel probing the loose ways of credit-rating agencies that issued seals of approval on junk securities........introduced damning e-mails, cited in a bombshell July SEC report. "Let's hope we are all wealthy and retired by the time this house of cards falters," said one Standard & Poor's employee, one of the top credit-ratings agencies at the center of junk mortgage paper. Another e-mail said rating firms created a "monster."
(Excerpt) Read more at nypost.com ...
They were hoping for a speed bump but hit the brick wall they knew was there.
Just damn. Starting back in 1998 with the technology bubble we saw a lot of BS reporting by analysts who were working for companies with investment banking operations. Say nice things about a company to support the IPO and following stock values. Companies know you can take them public for big windfall and your firm gets the business.
Doesn’t anyone ever learn here?
No, they didn’t create it, but they were major aiders and abettors.
You look at some of the tranches of mnortgage debt these putzes rated and it’s shocking. 98.5% LTV loans on hundreds new subdivisions in Stockton, CA, where previous homes sold for low $200K ramped up to the high $500K range; without the slightest consideration for the lack of wage-generating jobs in those areas; without even minimal consideration for the capitalization of mortgage insurers PMI, ABK, MBI. Just shocking, rating crap like that 20 and 30 basis points below Tsys. Insane. Ahhh, but they needed the next ratings deal, so just like a corrupt appraiser would crank their appraisal to “make the numbers” these guys, on a macro scale, did the same thing for their securitization clients.
Ultimately it’s just another example of a class of folks who will likely pay little or no price on a personal basis, but whose actions have probably badly undermined the integrity of the US financial system for a decade, and whose shoddy results will grind the US into a long and drawn out recession and credit crunch.
Where are the perp walks for these greedsters, for AIG, Lehman, for Fannie Mae and Freddie Mac? For ACORN?
Tyco, Enron and others swindled tens of millions of dollars from shareholders while the poster boys for corporate greed, Kenneth Lay and Dennis Kozlowski, and their minions, were made to execute the humiliating "perp walk"----led off to jail.
The mortgage meltdown perpetrated by Fannie Mae and Freddie Mac cost taxpayers billions. Why isn't Bush demanding Fannie Mae CEO Franklin Raines---- who pocketed over $90 million in perks, bonuses and pensions----be hauled off to jail?
Why isn't Raines, ACORN, as well as all the government officials who forced the banks to make these bad loans, doing the perp walk?
I saw it coming when a Real estate friend of mine started selling houses, banks started providing loans to people not in the country legally.
They just pooled their income to buy a good size house and 10-15 of them sharing the place.
We are a lawless nation.
Yeah, they learn, they learn only too well that the skirting or fraud of both the spirit and the black-letter regs of accounting standards and financial integrity generate such a low probability of prosecution, that a worthwhile bet is embedded therein.
I don’t think it took a great intellect to see the melt down coming. Just look back at the ads on radio and TV...”no job, not SSA #, no credit, no problem we can get you that home loan.” The home loan industry was turned into a joke on the US taxpayer.
Another example of the morally relative, not my fault "blameless" society.
It's NEVER anyone's fault........no one takes responsibility.
Demonstrates a complete and total disregard for one's fellow-man.
The horrendous consequences of a self-absornbed culture stripped of humanity.
(NOTE: All of the above are taught in schools 24/7 under the K-12 Planned Parenthood "Family Life" religion-hating classes).
If this were even a half-way perfect world, everyone one of those SOB’s would be doing the perp walk.
This is not a perfect world, however, and the swindlers of the RAT agenda get to do the lollipop walk with multi-millions, instead.
“No, they didn’t create it, but they were major aiders and abettors.”
Precisely right. The creators were Carter, Clinton, Dodd and Frank and the whole rotten crowd that’s washed through the upper echelons of Fannie and Freddie over the last 2-3 decades.
Good question.
Why isn't Raines, ACORN, as well as all the government officials who forced the banks to make these bad loans, doing the perp walk? ***
Why? Easy..
Golly, you mean the pukeneos aren't going to rush in and help Bush out of this mess? That's un-frickin-believable...I am so-o-o-o shocked....(/s)
Remember when the pukes duped Bush into invading Iraq, they told Bush to say he was "protecting Americans."
Sob.
And when the oleneos duped Bush into amnesty, he was told to say----the invaders deserved amnesty b/c they "risked their lives" to come here for a "better life."
Sniffle.
You didn’t have to be a Credit Analyst to see it coming! It was only a matter of time!
Can I get ya a hankie?
LOL
What's an "oleneo"?
“ole”——neo (amnesty pusher)
Well, look at the bright side...At least lots of people from all over the place will end up in homes, big or small, that they couldn’t otherwise afford to inhabit. The taxpayer subsidized anti-foreclosure programs coming down the pike will certainly please San Francisco Nan, Bawrney Fwanks, B. Hussein Obama etc...Quite a housing program- affordable or otherwise.../sarc
A dream come true for the libs. I do hope Bwaney doesn't get too excited from celebrating, and go and do something he will regret. Betcha that ol' Bwanster'll keep those Dwial-a-Dwick services humming (snicker).
A dream come true for the libs. I do hope Bwaney doesn't get too excited from celebrating, and go and do something he will regret. Betcha that ol' Bwanster'll keep those Dwial-a-Dwick services humming (snicker).
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