Jim Morin on the S&P downgrade:


Source: Miami Herald

Category: Analysts, Credit

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

9 Responses to “S&P: You’re Welcome!”

  1. DeDude says:

    We don’t need ratings we need a free and open market for CDS. Let them put their money where their mouth is. The rating should simply be the cost of insuring against default. Not perfect, but a heck of a lot better than the current payola system.

  2. mathman says:

    HA! Combine that with this and it looks like “good times ahead!”


  3. mitchw says:

    Nitpick alert, Barry. Isn’t it ‘You’re Welcome?’


    BR: Your correct !

    (LOL — I’ll fix above)

  4. In the First Amendment, the Founding Fathers gave the free press the protection it must have to fulfill its essential role in our democracy. The press was to serve the governed, not the governors. The Government’s power to censor the press was abolished so that the press would remain forever free to censure the Government. The press was protected so that it could bare the secrets of government and inform the people. Only a free and unrestrained press can effectively expose deception in government. And paramount among the responsibilities of a free press is the duty to prevent any part of the government from deceiving the people and sending them off to distant lands to die of foreign fevers and foreign shot and shell. –Justice Black. NYT v. US. 403 US 713


    one would think(?) that in matters less *sensitive, maybe, the Press would show, even, greater courage..

    but, alas, it isn’t, only, the ‘Dollar’ that has bee devalued– since Black’s Opinion..

    and, be Surprised! not a relevant hit, here .. http://search.yippy.com/search?input-form=clusty-simple&v%3Asources=webplus&v%3Aproject=clusty&query=New+York+Times+S%26P+Ratings+Fraud

  5. Petey Wheatstraw says:

    The comic would be more accurate if, in the first panel, Uncle Sam was looking the other way and wearing blinders.

    MEH: Free Press, like the US government, is a wholly owned subsidiary of the Global Corporatist Cabal.

  6. BusSchDean says:

    Good one! Eighty years ago John Commons gave us a wonderful gift — Institutional Economics.

    “Institutional economics emphasizes a broader study of institutions and views markets as a result of the complex interaction of these various institutions (e.g. individuals, firms, states, social norms). The earlier tradition continues today AS A LEADING HETERODOX [i.e., outside the 'mainstream'] approach to economics” (Wiki — my emphasis and [ ]). Could explain why the vast majority of economists had no clue about the looming crisis.

    For any institution (anyone really believe rating agencies will go away), the key question remains: What should our expectation be about their role and economic impact?

    We don’t have to imagine what happens if multiple institutions fail. As an insurer AIG’s role was to absorbed the impact of any error on the part of the rating agencies. How did that work for us?

  7. KJ Foehr says:

    1. Wall Street with its money pulls strings in Congress to get deregulation.

    2. Executive branch gives green light and ensures SEC, et al look the other way.

    3. Wall Street parties with abandon; profits soar from small mortgage sellers and underwriters all the way to the biggest banks.

    4. Stock market returns to historic highs.

    5. House of cards collapses. Trillions are lost. Trillions in debt remain.

    6. Government spends trillions to bail out Wall Street and save the economy.

    7. Debt is moved from private balance sheets to government.

    8. Instead of thanking the government, the private sector criticizes the government for having too much debt and threatens to lower its credit rating!

    This reality is more absurd than fiction.

    Next chapter?

    9. Due to criticism by private sector and myopic citizens, the government cuts spending too fast and shrinks in size; thus is less able to oversee the Wall Street and the rest of the private sector.

    10. Wall Street parties on and makes more obscene profits.

    11. Who will bail out the country next time???

    Who will change this before it’s too late? Private sector? Government? Or us?

  8. Christopher says:

    12. Open season on Wall Street Banksters and Lawyers.

  9. Deepish-Thinker says:

    I think your cartoonist missed the real joke.

    The same Muppet Army that rated atrocious CDOs AAA right up until the real estate bubble imploded just reaffirmed Uncle Sam’s AAA rating.

    Feeling reassured?