Reply #16: We might be downgraded because S&P is attempting to manipulate this crisis AND the next ELECTION [View All]

[kenny blankenship]

S&P, Moody's, Fitch are all accomplices of the banking mafia.

They are not neutral impartial observers of anything. They were CENTRAL to the mortgage fraud bubble and are completely corrupt and politicized. None of them have changed a bit - neither shaking themselves up in the wake of their scandal nor being reformed by the government that gives them recognition and authority. But they might still be prosecuted. That gives them a very explicable axe to grind against any Democratic Administration, present or future.

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Standard and Poor’s Should Not Be Able to Play Kingmaker in the 2012 Election

Standard and Poors is evidently meeting with high-stakes gamblers and letting them know where to place their bets as they manipulate the global economy. But they are also playing a much more sinister game. Like a cat toying with a mouse, they are also inserting themselves in the political process and setting themselves up to be kingmaker in the 2012 election.

It appears imminent that the credit ratings agencies will downgrade US debt. It’s completely irrational and unjustifiable, but it’s not a matter of “if” but “when.” And just as the battle over the debt ceiling between Republicans and Democrats was largely consumed with pinning responsibility for any default on the other (“nobody wants to be Newt”), so now the battle seems to have shifted to who will bear the blame for an inevitable credit downgrade.

(snip)

Yet here is S&P’s John Chambers meeting with Pimco, and telling them they favor the Reid plan — information they have not made available to the public. If you read the consent order issued by the Massachusetts Securities Division in June of this year (PDF), that’s exactly the activity that got Goldman Sachs in trouble. Goldman was selectively giving information to “large institutional investors” that it did not make available to the public.

(snip)

I don’t care whether you’re rabidly pro- or anti-Obama, a Republican or a Democrat or an Independent or a Green or none of the above. What S&P and the other CRAs are doing right now is completely illegal and outside the boundaries of their own codes of conduct. They’re acting as Wall Street’s tasers in Shock Doctrine 2.0, and making themselves the key player in determining what happens not only with the 2012 election but with the world’s economic future. They are playing a very dangerous game with the world economy that could have devastating consequences for all of us, regardless of what your partisan identification is.
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You have to read the whole thing as it's impossible to capture in four paragraphs. The one line synopsis is: S&P is violating current law in feeding its advice to large clients and withholding the same tradeable information from the public, AND the advice has to do with what THEY (S&P) intend to do to the government's credit rating, the economy and the reelection prospects of Barack Obama.