Game Over For Moody's On Einhorn Kiss Of Death? Stock Plunges After Greenlight Strategic Short Revealed

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Wed, 05/26/2010 - 18:21 | 375665 Cognitive Dissonance
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I've been wondering if Uncle sorry......I mean Uncle Waren might not see this as an opportunity to swoop in and pick up Moody's for pennies and then lend his "good" name to rejuvenate it as a mean & clean rating machine. Then he can rate everything to the moon that he wants to dump first.

But seriously it might make him at least. Personally I would run to the hills but that's just me.

Wed, 05/26/2010 - 18:48 | 375716 Mitchman
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Doubtful from my point of view.  Too much event risk from the regulatory side.  At this point in time, no one except the little guys has lost any money. When the SHTF, the lawsuits will pile up and people will be looking for scalps.

Wed, 05/26/2010 - 20:34 | 375904 Buck Johnson
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You are correct, its to risky.  Because once everything starts to come apart everyone and their mother will be throwing lawsuits at them and each other to recoup money that is no longer there.  And with anything once the rules are thrown out it will be every man for themselves company speaking and they will be pointing the finger at each other.  But in particular MOODY and the other rating agencies will be the one to go after because they rated this junk and it was junk pure and simple.  I think the only reason why their hasn't been any lawsuits after some of the emails about rating a security if a cow did it, is because so far they have been able to keep everybody on board in the extend and pretend and the mark to magic (as one poster put it).  But that won't last for long and it will be a blood bath.

Thu, 05/27/2010 - 01:04 | 376293 MaximumPig
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There's a big CALPERS suit against them:

Wed, 05/26/2010 - 21:03 | 375959 Cursive
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LOL.  Do you know Michael de la Merced?

Cognitive dissonance: ackman speaking in falsetto voice of Mr. Bill in speaking re $ggp #irasohn2010 #longdayforeveryone

Thu, 05/27/2010 - 01:52 | 376328 MrTrader
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Moody's `They deserve it ! By the way : uncle Warren has sold a huge part of his holdings ;=)

Wed, 05/26/2010 - 18:23 | 375668 hound dog vigilante
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death of ratings agencies = foregone conclusion.

that markets react this way tells you just how overvalued markets truly are right now... nothing negative is 'priced in' at all.

markets = Wiley Coyote off the edge of the cliff...

Wed, 05/26/2010 - 18:28 | 375683 cougar_w
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The news hasn't been priced into the market for 2 years because algos don't read the news.

Wed, 05/26/2010 - 19:02 | 375752 ThreeTrees
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Could it not be that it HAS been priced in and it's just that the low watermark has been raised by massive inflows of liquidity?

Wed, 05/26/2010 - 22:49 | 376117 hound dog vigilante
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so... equities already reflect future inflation. and all equity investors are onboard b/c they are all buy & hold, ultra-long term investors.

so of course equities have been preemptively inflated!  what could possibly go wrong in the foreseeable future?  Nothing!  Our world is a padded-room, free of risk!


Wed, 05/26/2010 - 19:30 | 375796 Fraud-Esq
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nor lawsuits

Thu, 05/27/2010 - 08:48 | 376497 Whizbang
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Wed, 05/26/2010 - 18:24 | 375672 chet
chet's picture

Why can't we just get the sheiks to buy all the remaining toxic crap and we can just move on?

Wed, 05/26/2010 - 18:28 | 375684 Mitchman
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They have their own toxic crap.  It's called Dubai.

Wed, 05/26/2010 - 18:56 | 375740 Cheeky Bastard
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Not anymore.

Restructuring was announced over a month ago.


Wed, 05/26/2010 - 19:19 | 375775 geminiRX
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Shit like that is unlikely to be restructured successfully in this environment (both economically and environmentally). The desert will likely reclaim Dubai making it the largest ghost city in the world some day. The place was devoid of tourists when I went last year. My 5star suite that was worth >1000 per night fetched $200

Wed, 05/26/2010 - 19:37 | 375814 Cheeky Bastard
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It was more for the reason of preventing the surge in CDS and counterparty risk than anything else. I think ADSWF bought all CDS outstanding for a premium.

Wed, 05/26/2010 - 20:39 | 375912 Mitchman
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You are correct, of course.  However, it is hard to believe that they will hold up during this next crunch.  Your thoughts will be appreciated.

Wed, 05/26/2010 - 20:52 | 375935 Cheeky Bastard
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there is a shitload of synthetic stuff floating out there which has Dubai stamp over it. ADSWF only bought CDS outstanding on normal bonds, not on synthetic stuff which is still floating out there. But Dubai has nothing to worry about anymore, since it has pulled all of its bonds out of the market. Synthetics are now the sellers risk as are the collateral calls which have surely came pouring in when the announcement was issued.

Wed, 05/26/2010 - 22:55 | 376132 Mitchman
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Excellent point and thank you for the clarification.  I will impugn a more deserving target the next opportunity.  :-)

Thu, 05/27/2010 - 04:25 | 376168 velobabe
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done, tired

Wed, 05/26/2010 - 18:24 | 375675 cougar_w
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We won't have to eat the rich, we can just wait and watch while they eat each other.

Though the last rich guy standing is going to be one mean mo'fo.

Wed, 05/26/2010 - 18:51 | 375726 wawawiwaa
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Historically that guy has been called by several names including King, Ceasar, Kahn, etc... and yes... they kicked a#$%^& and took names.



Thu, 05/27/2010 - 00:36 | 376268 OldTrooper
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Ahhhh! Yesterday was a good day.  Consumed the last of my rich rivals.  Now, where's my breakfast!

Wed, 05/26/2010 - 18:30 | 375687 MsCreant
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Look at all these posts from TD and Marla. The financial system will collapse because everything is going to be frozen in a gridlock of court cases. Folks will need to make margin calls. There will need to be a holiday as momentum picks up.

The Shit is Hitting the Fan. Get ready for the spray.

This is called smelling it before it hits you. Kinda like the gulf spill.

Wed, 05/26/2010 - 18:57 | 375742 Mr Lennon Hendrix
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The vampire skunk!  I guess Octopi spray too, but skunks are funny.

Wed, 05/26/2010 - 18:47 | 375713 Edna R. Rider
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And only 15 minutes after Einhorn's announcement, Buffett announces he's going to testify on MCO in front of congress.  My o My, how the rich are different than you and me.

Wed, 05/26/2010 - 18:57 | 375741 knukles
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Let's define the Power Elite.  Those that shall never feel the steel of handcuffs nor the humiliation of the perp walk, whatever their crime.
Implies (an understatement) an economic shared interest between the politicals and thier economic providers.

So, Warren gets to go in front of his political counterparts to explain Moody's case.  As if he'd been running it hands on, maybe?

Poor fellow just cannot seem to get a break with Wall Street investments; Salomon, GS, Moody's to recollect a few.  But Warren is not alone in that experience either, remembering the GE connection to Kidder.  (And CNBC)  Sorta like outsiders investing in Hollywood;  about as successful as Chamberlin's Peace in Our Time.

"As a dog returns to his vomit, so to a fool to his folly."-Proverbs, 26:11

Wed, 05/26/2010 - 20:27 | 375893 Apostate
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Few on Wall Street like Warren. Much less so his healthcare bill.

I mean, it was one thing, when you could just make money trading derivatives that are based on nothing, because American companies are all pieces of shit anyway that have barely produced an iota of technological advancement since the late '90s.

Though, hell, if the regulations had supported it, we might've had an internet in the '70s or '80s. Technological and social advancement is actively and openly suppressed by politics and the crazy university system.

Now, it's becoming apparent that all the paper is going to be worthless. So we may have to just go back to creating real companies that change the world before 1 billion Chinese eat us alive.

So NOW people get off their ass to do something about the situation.

Fuckin' Omaha.

Thu, 05/27/2010 - 06:39 | 376409 Mercury
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Officially Buffett is answerable to BRK shareholders not Wall St. and most of them do like him.

A certain level of computing firepower (ultimately developed by private enterprises like Intel) had to have been in place for the Internet to become the Internet. Pamela Anderson is more effective in a medium with fast loading graphics than one with just green ASC II text.

For years in the 80's France had a (government run) WWW-like system called MiniTel which was great at the time (and mostly limited to green text) but it never really developed beyond a certain point when the WWW itself started becoming big.

Wed, 05/26/2010 - 20:29 | 375896 QQQBall
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Salomon Bros worked... He did well, no? GS is still paying, but I have no idea if he made dough on MCO or not.

Wed, 05/26/2010 - 20:50 | 375931 Apostate
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That was then, this is now.

Wed, 05/26/2010 - 18:48 | 375719 wawawiwaa
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Must be nice to be able to make a stock tank at will by saying something completely obvious and being yourself. 

Wed, 05/26/2010 - 20:34 | 375901 Mercury
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It' helps to be known as the smartest guy(s) in the room, for doing the homework, putting lots of money where your mouth is and being right again and again.

I knew Einhorn and Ackman would deliver at this thing.

Wed, 05/26/2010 - 18:51 | 375727 Turd Ferguson
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I've got 121.60 on the euro

Wed, 05/26/2010 - 19:00 | 375750 Christobevii3
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Bought january $10 puts a couple of weeks ago and already up 50%, hell yeah! 

Wed, 05/26/2010 - 19:02 | 375753 Popo
Popo's picture

It couldn't happen to a nicer bunch of insider criminals.

Wed, 05/26/2010 - 19:22 | 375783 williambanzai7
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Wed, 05/26/2010 - 19:27 | 375791 Me XMan
Me XMan's picture

How much Buffet own this Moody's?

Wed, 05/26/2010 - 19:30 | 375799 MiguelitoRaton
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Slammed in after hours. And I thought failure was rewarded in this Farcist system.

Wed, 05/26/2010 - 19:34 | 375804 bigdad06
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It's about damn time! Good riddance to the bastards!

Wed, 05/26/2010 - 19:38 | 375817 Nikki
Nikki's picture

A RICO case should have been the downfall of this POS company, not a bear raid. Kind uncle Warren is more like uncle Ernie in Tommy.

Wed, 05/26/2010 - 19:58 | 375818 holdinmyown
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Ackman's bought up 150m shares of $c in recent weeks. No time for elaboration #irasohn2010

Wed, 05/26/2010 - 19:40 | 375824 Leo Kolivakis
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Not news to me, and I agree with Einhorn, this puppy is a dead sucker.

Wed, 05/26/2010 - 19:44 | 375830 geminiRX
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I nominate Zerohedge to replace Moody's as a ratings agency:)

Wed, 05/26/2010 - 19:52 | 375842 johngaltfla
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Is it possible to kill a vampire without actually driving the stake through its heart? Then burning it with napalm. Then maybe pouring acid on the remains? Hell, we all thought Citi was finally killed and that piece of crap rose from the ashes.

Wed, 05/26/2010 - 19:59 | 375854 AccreditedEYE
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Chris Whalen used to call it the zombie love party. You wanna see something REALLY frightening, check out the government agencies exposure to the mortgage market and how... well... that is going. LOL

Thu, 05/27/2010 - 08:44 | 376490 johngaltfla
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Chris Whalen is a must read whenever the banksters are discussed. And his opinions on the rating agencies are classic. Sadly, nobody wants to listen to what he's been warning about until it becomes a full blown crisis. Between the GSE circus and banksters lying about their books he's going to remain a very, very busy man.

Wed, 05/26/2010 - 20:22 | 375883 LeBalance
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It is much more exquisite to withhold food. :)

Wed, 05/26/2010 - 19:53 | 375844 lynnybee
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i love this website !   being a "newbie", i'm learning so much !  thanks, ZEROHEDGE !

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