S&P: You're an Idiot If You Trust Our Ratings

Discussion in 'Too Hot for Swamp Gas' started by corpgator, Jul 9, 2013.

  1. corpgator
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    corpgator Well-Known Member

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    http://www.bloomberg.com/news/2013-07-08/s-p-to-argue-puffery-defense-in-first-courtroom-test.html

    So I have a few thoughts on this.

    1. Why in the world does the financial sector drive our profits? The largest share of profits from one sector in the US is from they. They are openly admitting to lying, yet our economy is inextricably bound up in all of their chicanery. That doesn't seem like a good recipe for success.

    2. Their main claim is that their statements about being bias free were puffery. So they are basically claiming they give out ratings for profit, thus proving the state's case against them.

    3. For everyone who howled about them cutting the US credit rating, they have now been proven foolish for trusting something that was stupid to begin with.

    4. Why does S&P even exist? If smart investors know better than to trust their ratings, than what is the point of putting out ratings at all?

    By the way, their request for dismissal was denied. Too bad it's only $5 Billion they'll have to pay up.

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