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Moody's Receives Wells Notice, SEC To Commence "Cease & Desist" Proceedings Against Rating Agency

Tyler Durden's picture




 

And now for today's bombshell - lietarlly at the very end of Moody's 10-Q filed last night, we find this stunner:

On March 18, 2010, MIS received a “Wells Notice” from the Staff of the SEC stating that the Staff is considering recommending that the Commission institute administrative and cease-and-desist proceedings against MIS in connection with MIS’s initial June 2007 application on SEC Form NRSRO to register as a nationally recognized statistical rating organization under the Credit Rating Agency Reform Act of 2006.

Well at least it took Moody's under two months to report this massively material development, which while we are not positive on how to read the C&D action on the NRSRO registration, could mark the beginning of the end for the rating agency. If the firm is enjoined from providing additional rating research should the SEC action find fault and proceed with a lawsuit, it would mean game over for the business. Egan-Jones: it's IPO time.

We will be shocked, shocked we tell you, to find that Mr. Buffett has sold out his entire position in MCO when BRK's next 13-F is filed.

h/t Jing

 

 

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Sat, 05/08/2010 - 13:06 | 338028 w a l k - a w a y
w a l k - a w a y's picture

Another crack in the dam, it seems.

Sat, 05/08/2010 - 13:09 | 338031 MsCreant
MsCreant's picture

Or a crack in the damned?

Sat, 05/08/2010 - 13:39 | 338079 Cistercian
Cistercian's picture

 Or cracking down on the damned.

Sat, 05/08/2010 - 18:23 | 338371 bc0203
bc0203's picture

Naw, the damned will just keep doing crack.  We've still got two rating agencies to bribe!

Sat, 05/08/2010 - 20:58 | 338536 Problem Is
Problem Is's picture

Uncle Warren can put a stop to crack with some home spun transparency...

Would you really want to view that decrepit, wrinkled ol' crack. It would make the entire industry put down the pipe and go to rehab...

Worked for Amy W... isn't she still in leaky tit job rehab?

Sat, 05/08/2010 - 20:19 | 338492 Translational Lift
Translational Lift's picture

Any chance of Moody's downgrading itself in a timely manner??

Sat, 05/08/2010 - 23:22 | 338662 BlackBeard
BlackBeard's picture

Beautiful.  I'm short Moody's.

Sat, 05/08/2010 - 13:07 | 338029 ambrosiac
ambrosiac's picture

 

"Go Now", The Moody Blues

 

http://www.youtube.com/watch?v=qLgdcGEqgcw

Sat, 05/08/2010 - 13:16 | 338042 MsCreant
MsCreant's picture

Not entirely right. We are not still in love with them.

How bout this:

Gold Dust Woman, Fleetwood Mac:

http://www.youtube.com/watch?v=x6hkY4VvQAA

Rock on, gold dust woman
Take your silver spoon
And dig your grave

Heartless challenge
Pick your path and I'll pray

Wake up in the morning
See your sunrise, loves, to go down
Lousy lovers, pick their prey
But they never cry out loud

Did she make you cry
Make you break down
Shatter your illusions of love
Is it over now, do you know how
Pick up the pieces and go home.

Rock on, ancient woman
Follow those who pale
In your shadow

Rulers make bad lovers
You better put your kingdom up for sale

Did she make you cry
Make you break down
Shatter your illusions of love
Is it over now, do you know how
Pickup the pieces and go home.

Sat, 05/08/2010 - 13:35 | 338071 cougar_w
cougar_w's picture

Nicely played.

Sat, 05/08/2010 - 23:30 | 338668 Oh regional Indian
Oh regional Indian's picture

mmmmhhhhhh..

that was what I considered music before I gave up on wordy 3-5 minute songs completely.

Them and CSN.

:-)

Sat, 05/08/2010 - 23:38 | 338674 MsCreant
MsCreant's picture

Ah, but what of Young? Does he not make your grade?

Sun, 05/09/2010 - 00:02 | 338691 Oh regional Indian
Oh regional Indian's picture

Nope MsC, there is something about the three part harmony that a fourth cannot fit into.

Trines and octaves, betwixt them lie all laws of creation and harmony.

Add a fourth or a ninth and its harm-only!

;-)

Sat, 05/08/2010 - 13:48 | 338090 Pure Evil
Pure Evil's picture

That was the Moody Blues? What happened to them between then and toward the later stages of their career?

Grandma: they looked like such nice boys.

From clean cut to sex, drugs, and rock & roll!

Sat, 05/08/2010 - 13:25 | 338034 Fish Gone Bad
Fish Gone Bad's picture

I am thinking this is more than "a teachable moment" thing.  I am thinking uncle Warren knew about this and dumped his holdings.

Sat, 05/08/2010 - 13:38 | 338077 mikla
mikla's picture

+1

Warren totally had the inside track on this.  A shame he's not worthy of his hero status, but that's been known for some time.

This means one of the following:

  1. Consolidation of the cartel, we need a scapegoat.  Sorry Moody's, nothing personal.
  2. The ratings cartel is about to go super-nova (the markets are broken, nobody trusts, and only morons had faith in the ratings anyway).

I don't see a third option...

Sat, 05/08/2010 - 13:54 | 338102 Pure Evil
Pure Evil's picture

What you takin' bout Willis?

MoFo is still a hero!

Likes to make money the old fashioned way, and that is, 'anyway he can'.

You don't get rich dreaming about sunshine, lollipops, and rainbows.

It takes scheming, conniving, luck, and a little insider information.

Sat, 05/08/2010 - 14:07 | 338119 mikla
mikla's picture

Such a shame it's a crapshoot without insider info.

Sat, 05/08/2010 - 15:43 | 338247 anony
anony's picture

Wall Street Motto:

"Profit is other people's ignorance".

Sat, 05/08/2010 - 20:38 | 338514 whacked
whacked's picture

Pity that Buffett doesn't come under more scrutiny in his dealings.

Sat, 05/08/2010 - 13:11 | 338035 Catullus
Catullus's picture

Bullish. Can't downgrade debt if there's no rating agency.

Sat, 05/08/2010 - 13:16 | 338044 SteveNYC
SteveNYC's picture

LOL!! Or:

 

"Cease and Desist" from downgrading shit European debt and junk bonds. Fall in line with "hope" strategy.

Sat, 05/08/2010 - 14:38 | 338166 AN0NYM0US
AN0NYM0US's picture

exactly

Sat, 05/08/2010 - 13:17 | 338046 MsCreant
MsCreant's picture

Oh Fuck! I suspect you have something there.

Sat, 05/08/2010 - 13:38 | 338078 cougar_w
cougar_w's picture

That was my first thought.

The system is doomed when there is this much cynicism on the streets. The real economy goes Greek (underground and off the books) when there is this much cynicism on the streets.

Sat, 05/08/2010 - 14:06 | 338123 Cheeky Bastard
Cheeky Bastard's picture

Dear Catullus

We have an open post seeking our new Chief Economist. Give us a call

Sincerely yours

Federal Reserve Bank Chairman

Ben Shalom Bernanke

 

Sat, 05/08/2010 - 14:52 | 338188 faustian bargain
faustian bargain's picture

My first thought too.

I wouldn't put it past the SEC to be gunning for taking over the duties of the rating agencies. We'll probably see some arguments surfacing soon, that private industry has no right to give credit ratings.

Sat, 05/08/2010 - 15:12 | 338225 MsCreant
MsCreant's picture

Would that also expand their power to watch porn? Taking bribes can pay for some serious porn subscription action.

 

I know the porn jokes are getting old, but hey...they heaped this on themselves.

Sat, 05/08/2010 - 18:35 | 338382 faustian bargain
faustian bargain's picture

That's basically what getting and keeping power is all about: unlimited porn.

Sat, 05/08/2010 - 13:12 | 338036 Mitchman
Mitchman's picture

Interesting.  they should have filed an 8-K when they got the notice as this is a material development.  More interesting is the question of what the notice is about.  It looks like not everyone at the SEC has been surfing porn LOL.

Sat, 05/08/2010 - 13:12 | 338037 philgramm
philgramm's picture

Now the SEC can hire GS to rate all the sovereign debt.  Let's face it GS is as objective as Moody's.

Sat, 05/08/2010 - 14:12 | 338138 snowball777
snowball777's picture

+1 Funny!

Sat, 05/08/2010 - 13:14 | 338040 BabyShoes
BabyShoes's picture

Moody's came up a little short on last months payment to the SEC.

Sat, 05/08/2010 - 14:09 | 338129 Cheeky Bastard
Cheeky Bastard's picture

Morrie: Henry, you're a good kid, I've been good to you, you've been good to me. But there's something really unreasonable going on here. Jimmy's being an unconsionable ball-breaker. I never agreed to 3 points on top of the vig! Am I something special? Some sort of schmuck on wheels? 
Henry Hill: Morrie, please! You borrowed Jimmy's money, pay him. 
Morrie: I never agreed to 3 points on top of the vig! What am I, fuckin nuts? Come on! 
Henry Hill: Are you gonna argue with Jimmy Conway? Just give him his money so we can get the fuck outta here! 
Morrie: Hey! Fuck 'em! Fuck 'em in the ear! What are you talking about? Fuck 'em in the other ear, that son of a bitch! Did I ever bust his balls? Did I? Did I? I could've jumped the dime a million times, and I wouldn't have to pay tip! 
Henry Hill: Come on, Morrie, you're talking crazy, stop it! 
Jimmy Conway: [Grabs telephone cord and chokes Morrie with it, then his wig falls off and Henry starts laughing] You got money for that fuckin commercial. Fuckin' commercial, you don't got my money, you don't got my fuckin money, huh? 

Sat, 05/08/2010 - 14:42 | 338171 Simon Jester
Simon Jester's picture

Alas, I long for the bye gone days of good 'ol fashioned racketeering....It was loaded with humor.

I really wish Benji wore a toupée...

Sat, 05/08/2010 - 14:51 | 338184 Atomizer
Atomizer's picture

+ 10

Sat, 05/08/2010 - 13:17 | 338048 Schwantz
Schwantz's picture

It's now clear to anyone with a brain that Uncle Warren is one of the banksters.

Sat, 05/08/2010 - 15:00 | 338204 Ned Zeppelin
Ned Zeppelin's picture

That has been clear for a while. Mr. Ethics, Mr. "anti-Wall Street," Mr. Middle America.  Pathetic pile of merde.

Sat, 05/08/2010 - 13:19 | 338051 b_thunder
b_thunder's picture

"Paging Dr. Buffett.... paging Dr. Buffettt.... Patient is critical... Need some positive comments in the media ASAP"

 

Sat, 05/08/2010 - 16:09 | 338267 Hephasteus
Hephasteus's picture

He's busy killing and poisoning kids in the 3rd world with Mr. Gates.

Sun, 05/09/2010 - 16:00 | 339647 Careless Whisper
Careless Whisper's picture

Actually they're "just" making them sterile with their vaccines. But they know what's best for the world.

Sat, 05/08/2010 - 13:26 | 338057 Nihilarian
Nihilarian's picture

Lovely Put volume for May and June.

Sat, 05/08/2010 - 13:29 | 338060 Glenjo
Glenjo's picture

Ah, such a shame.  Hard to tell if they're being punished for years of shitty puffed up ratings or the current occasional truthful rating.  Couldn't happen to a nicer bunch of people with a moral compass that always points at the easy money.

Sat, 05/08/2010 - 13:34 | 338067 FischerBlack
FischerBlack's picture

LMAO.

Moody's Corporation:

Committed to excellence since March 18, 2010.

Sat, 05/08/2010 - 14:07 | 338126 Nihilarian
Nihilarian's picture

+Superb!

Sat, 05/08/2010 - 14:35 | 338161 AnonymousMonetarist
AnonymousMonetarist's picture

+100

Sat, 05/08/2010 - 13:36 | 338073 spanish inquisition
spanish inquisition's picture

Nice coincidental volume spike on the 18th.

Sat, 05/08/2010 - 13:42 | 338083 cougar_w
cougar_w's picture

But ... that would imply insider trading on material developments!

Not in America, sir! We have laws for things like this!

Sat, 05/08/2010 - 13:51 | 338096 LeBalance
LeBalance's picture

There is "yeah we know they suck" fear and then there is "officially they suck" fear.  Very different stage of the illness.

/ a toast /

"To the many days ahead, which make May 6, 2010 pale in comparison."

Sat, 05/08/2010 - 13:53 | 338101 sheeple
sheeple's picture

I'll take the contrarian view: Moody's a buy!

Sat, 05/08/2010 - 14:03 | 338117 Implicit simplicit
Implicit simplicit's picture

I don't think so. Watch the short ratio go up to 15% from 12% in one week. Target 18.50 within 1 month.

Sat, 05/08/2010 - 23:49 | 338682 covered
covered's picture

Well, Sheeple, there was a time I woulda agreed with you. But even if they hit your .01 bid that we saw so many of Thursday and by some voodoo magic Moody's were to get off, they would just bust our trade. Even a real casino pays off the occasional winner. Now these fuckers are trying to welsh on the few playas they got left.

Sat, 05/08/2010 - 13:54 | 338103 assumptionblindness
assumptionblindness's picture

This is gonna shake the bond markets, no? 

Sat, 05/08/2010 - 13:55 | 338105 HCSKnight
HCSKnight's picture

LoL.... I guess after WB's support of GS, TeamBO decided to put a shot across WB's bow and begin distanceing themselves....

It's always interesting to see where the next "unseen" comes from.

Wonder if this had anything to do with Thursday's sell orders?

HCSKnight

Sat, 05/08/2010 - 14:03 | 338115 Mark McGoldrick
Mark McGoldrick's picture

Warren Buffet dumps $30 million of MCO stock right after Moody's got their notice.

http://www.secform4.com/insider-trading/1059556.htm

Another win for Einhorn. 

Sat, 05/08/2010 - 14:17 | 338141 snowball777
snowball777's picture

Ray McDaniel better kneel and pray that $2.9M can buy a good enough lawyer.

Sat, 05/08/2010 - 14:22 | 338149 Mark McGoldrick
Mark McGoldrick's picture

"Grandpa Buffet" is the ultimate example of a wolf in sheep's clothing. 

Sat, 05/08/2010 - 16:35 | 338281 lovejoy
lovejoy's picture

Moody gets a Well Notice on March 18 and Warren Buffet goes and sells about 1 million shares within 3 days. Wonder if he was told about about the Well Notice. If so, insider trading. he was trading on inside information.

Sat, 05/08/2010 - 17:07 | 338307 drwells
drwells's picture

Just more outstanding work by ZH and commenters that would have people swinging from lamposts in any civilized country.

Sun, 05/09/2010 - 02:02 | 338782 Fraud-Esq
Fraud-Esq's picture

Son.of.a.bitch

Sat, 05/08/2010 - 14:05 | 338122 Eric W
Eric W's picture

Are the junkyard dogs that are the federal govt turning on their masters (Wall St)? It would make sense, as the panic sets in over the anger around the globe in the peasants and serfs. How will the war progress? Is it war or psyops?

Is it:

International bankers
Central banks
Financial institutions themselves
vs.
Politicians
lazy-ass Regulators and govt employees
Unions

OR

International bankers
Central banks
Financial institutions themselves
Politicians
lazy-ass Regulators and govt employees
Unions
vs.
everybody else, you and me, the cannon fodder

OR

both of the above?

Sat, 05/08/2010 - 16:40 | 338287 ExistentialSkeptic
ExistentialSkeptic's picture

The 2nd one --

The IMF/World Bank/FED/JPM/Rothchilds/CFR/Fabian manipulators

using the freebie-addicted Pols and public

vs.

productive members of society that don't support their agenda

 

Fortunately, the giants may have overreached, and there is a slim possibility that events may run away from them. 

Sat, 05/08/2010 - 17:42 | 338331 Pure Evil
Pure Evil's picture

Its a matter of who thinks who's the master of who.

Banksters can grease the skids, but unless they have their own private army behind them to back up their play they're totally up shits creek.

Only one group of people can call in the US Marshals/FBI/Secret Service/CIA/etc. to conduct raids and detain (arrest) criminals.

And, there's no way on God's Little Acre that the politicos are ever gonna give up that power. All the banksters can do is target them at election time. (Although some have speculated that the Kennedy assination was a result of his desire to eliminate the Federal Reserve.)

So if the banksters believe for one second they have the upper hand they are severly delusional.

But, all these assholes are nothin' more than trannie whores. They all went to the same IVY League schools, all engaged in various forms of unhibited sexual adventures with each other, and all have checkered pasts that keep them doing the bidding of the monied elites who have opened doors for them since day one. (ahem, does this sound like Obama to anyone?)

Another prime example is Little Timmy Gieghtner. Mr. Tax Dodger will do anything asked of him over at Treasury to keep from spending time in Federal Prison. With his delicate nature his only chance of survival is to become a Queen.

Sat, 05/08/2010 - 14:06 | 338124 snowball777
snowball777's picture

One has to wonder if this has the potential to trigger repudiation events.

Sat, 05/08/2010 - 14:12 | 338134 Atomizer
Atomizer's picture

Yesterdays scare in NYC was another dry run to create fear. USA is slowly becoming the UK

EBN - Comply

http://www.youtube.com/watch?v=-w67DUjx7q0

 

Sat, 05/08/2010 - 20:46 | 338523 SWRichmond
SWRichmond's picture

Yes, the US media is already reporting how many CCTV cameras there are in UK and how you need them in NYC.

Sat, 05/08/2010 - 14:19 | 338145 Rick64
Rick64's picture

I know its easy to be critical and pessimistic about the SEC, but I applaud this move. Its long overdue. Getting rid of the corrupt ratings agencies will bolster market confidence, but it is probably too little too late. I think what we fear is that they will replace them with another inadequate and corruptible institution.

 Buffet has been scaling out of his moodys position for some time now, while saying they did nothing wrong (sound familiar? GS).

Sat, 05/08/2010 - 14:54 | 338193 faustian bargain
faustian bargain's picture

"bolster market confidence". Yeah, that's what we need.

Sat, 05/08/2010 - 15:49 | 338249 anony
anony's picture

Technically, I could execute Lord Blankfein, and I wouldn't have done anything wrong.  Unless it can be proven. And I get caught. And there is enough evidence to indict. And, if found guilty, 12 jurors convict me. And I don't appeal.

So, technically, Warren Buffoon, isn't 'wrong'.

Sat, 05/08/2010 - 14:19 | 338146 Boxed Merlot
Boxed Merlot's picture

I only hope all those "idiot" gold bugs that have been hoarding the barbaric relic understand the awesome responsibility that will soon be thrust on them as they become the new holders of the physical trust.

Sat, 05/08/2010 - 14:43 | 338170 Atomizer
Atomizer's picture

Perhaps your missing a significant point.

The change of the guards

Soros More Than Doubled Gold ETF Stake in 4th Quarter

http://www.bloomberg.com/apps/news?pid=20601087&sid=aKs0jaibTSmY

Two scenario's. Find the short side of this scam or take immediate delivery of your take.

bwahahaha

Sat, 05/08/2010 - 14:36 | 338165 AnonymousMonetarist
AnonymousMonetarist's picture

Ye Gads!

Is that hope I smell?

A fragrance long since forgotten...

 

Sat, 05/08/2010 - 14:45 | 338174 MsCreant
MsCreant's picture

Or is that what they want you to smell to cover their stench? Who campaigned on that stuff you speak of?

Don't want to bust your bubble, but I am getting more cynical by the hour. They could be trying to save the economy and I would get in their way at this point because I am soooo suspicious of them.

Sun, 05/09/2010 - 01:31 | 338766 Boxed Merlot
Boxed Merlot's picture

I apologize for using the term "hope" if it in any way is/was associated with a sense of admiration for this administration, its' attorneys at large or the advancement of their pragmatic solutions that are destroying true wealth in the US, TRUST. AU gains more value when held, administered and dispensed in an environment of soveriegnty and this current regime has squandered their temporary positions of elected authority thus far, so it will fall on the soveriegn citizenry's shoulders to pick up where these bozos have failed. imo

Sat, 05/08/2010 - 14:45 | 338175 AN0NYM0US
Sat, 05/08/2010 - 14:49 | 338180 MsCreant
MsCreant's picture

Damn, we just beat down optimism on this site, don't we.

Blanket party!!!!

Sat, 05/08/2010 - 15:08 | 338211 AN0NYM0US
AN0NYM0US's picture

AM says: "Ye Gads! Is that hope I smell?"

No, it's actually  the smell of  bitter almond

Sat, 05/08/2010 - 14:40 | 338167 exportbank
exportbank's picture

I'm appalled - who are we supposed to go to buy the AAA ratings whenever we need them?

Sat, 05/08/2010 - 14:53 | 338192 Dr. Richard Kimble
Dr. Richard Kimble's picture

How is this NOT a material event triggering the mandatory filing of an 8-K under 8.01??????

Sat, 05/08/2010 - 14:55 | 338196 Atomizer
Atomizer's picture

Can anyone smell the aroma of freshly shredded documents?

Sat, 05/08/2010 - 17:16 | 338314 glenlloyd
glenlloyd's picture

ditto....somewhere there's a shredder running full bore, and my guess is trucks are lining up to dump...anyone got any access to satelite imagery?

Sat, 05/08/2010 - 14:56 | 338197 bugs_
bugs_'s picture

Deep Shah

Sat, 05/08/2010 - 14:59 | 338200 Mitchman
Mitchman's picture

I guess maybe the Europeans need their own "independent" rating agency after all...

Sat, 05/08/2010 - 14:59 | 338202 JimboJammer
JimboJammer's picture

This  stuff  scares  people  away  from  wall  street...

New  York  City  Police  know  the  next  Car  Bomb

>>>  Will  Go  Off ...

That  will  hurt  the  markets  too. ...

Sat, 05/08/2010 - 15:03 | 338212 Ned Zeppelin
Ned Zeppelin's picture

That's it - I'm naming my new band The Barbarous Relix.

Sat, 05/08/2010 - 16:43 | 338290 ExistentialSkeptic
ExistentialSkeptic's picture

+10

Sat, 05/08/2010 - 15:19 | 338230 williambanzai7
williambanzai7's picture

THE RATING AGENCIES
(The Adams Family Song)
WilliamBanzai7

They're sleepy and they're stupid,
Mysterious and crooked,
They're all together shakey,
The Rating Agencies.

Their models are a screa-um.
When people come to see 'em
Their living in a drea-um.
The Rating Agencies.

Moody's

Snap snap

S&P

Snap snap

Fitch

So get a Wall Street witch's shawl on.
Conflicts? Pay their fees to get them crawlin.
We're gonna pay a call on
The Rating Agencies.

Sat, 05/08/2010 - 22:22 | 338618 Mitchman
Mitchman's picture

+10!

Sat, 05/08/2010 - 15:24 | 338234 deadhead
deadhead's picture

Haven't been around in a bit but all is relatively well.

Just wanted to stop by to say "hi" and note that Buffet is a pig masquerading in a teddy bear/red, white and blue/all american apple pie persona.

 

 

 

Sat, 05/08/2010 - 16:07 | 338265 velobabe
velobabe's picture

kiss kiss†

bye bye for a while, don't worry about me.

Sat, 05/08/2010 - 16:12 | 338271 Hephasteus
Hephasteus's picture

Hope your doing ok deadhead. Missed ya.

Sat, 05/08/2010 - 16:36 | 338282 Bolweevil
Bolweevil's picture

I wish you dancing bears and miracle tickets Mr. Head.

Sat, 05/08/2010 - 17:10 | 338309 MsCreant
MsCreant's picture

I likes and misses me deadhead. Been wondering about you. Hope you are well.

Sat, 05/08/2010 - 17:15 | 338313 deadhead
deadhead's picture

Thanks all!  

I am working again and cannot access any internet during the day, etc.....  still adjusting to a much different and more restrictive routine than my previous work life but am happy to have work.

 

in case anyone is wondering, it is still a depression out there as far as i'm concerned...... good news is the family is well and i do spend more time praying for those in very difficult situations right now. 

Sat, 05/08/2010 - 17:22 | 338320 Cheeky Bastard
Cheeky Bastard's picture

Remember deadhead, universe always tends towards equilibrium.

PS

Im happy you are finally working. Drop by some more if you are not to tired when the workday is over.

Sat, 05/08/2010 - 18:39 | 338393 faustian bargain
faustian bargain's picture

Dude! People have been worried. :)

Sat, 05/08/2010 - 15:25 | 338235 anonnn
anonnn's picture

Wells Notice...fine example of gaming the justice system.

Q. And just who do you think are the gamers?

A. The best and brightest that can be bought... wittingly or not doesn't matter. The job gets done.

Q. Who creates the rules?

A. [your answer].

[Optional Q. for those bewildered.] Who really creates the rules?

A. [your real answer?]

[Optional Q. if still bewildered.] Who creates the rules for you?

A. ?

Sat, 05/08/2010 - 16:14 | 338273 Atomizer
Atomizer's picture

Speaking of bands. The current concept is quite simple. The playbook of ACTORS repeat this over & over again. Just like a market bubble, a small prick can cause chaos. New reform and restrictions to further their cause, hence the new bubble. The illusionist's have been exposed, they're having a hard time during the denial stage.

Giraffe in Quicksand - Thanks Nate. :)

http://www.youtube.com/watch?v=YEZJei6DD0o

 

The Playbook

Bauhaus - "Party of The 1st Part"

http://www.youtube.com/watch?v=9lwQRpBzbxg

 

Sat, 05/08/2010 - 16:39 | 338286 Madhouse
Madhouse's picture

Ever crush a bee, and it stung you ?  Moodys: US sovereign debt to single A as a parting shot...  

The SEC has comic timing. They should have pulled Moodys over five years ago and now this is the last thing we need this month.

Oh, and why the crack in the market on Thursday ?  Simple reason: gravity.

Sat, 05/08/2010 - 16:55 | 338299 ghostpirate
ghostpirate's picture

Jules: You read the Bible? 

Ringo: Not regularly. 

Jules: There's a passage I got memorized. Ezekiel 25:17. "The path of the righteous man is beset on all sides by the inequities of the selfish and the tyranny of evil men. Blessed is he who, in the name of charity and good will, shepherds the weak through the valley of the darkness. For he is truly his brother's keeper and the finder of lost children. And I will strike down upon thee with great vengeance and furious anger those who attempt to poison and destroy my brothers. And you will know I am the Lord when I lay my vengeance upon you." I been sayin' that shit for years. And if you ever heard it, it meant your ass. I never really questioned what it meant. I thought it was just a cold-blooded thing to say to a motherfucker before you popped a cap in his ass. But I saw some shit this mornin' made me think twice. Now I'm thinkin': it could mean you're the evil man. And I'm the righteous man. And Mr. .45 here, he's the shepherd protecting my righteous ass in the valley of darkness. Or it could be you're the righteous man and I'm the shepherd and it's the world that's evil and selfish. I'd like that. But that shit ain't the truth. The truth is you're the weak. And I'm the tyranny of evil men. But I'm tryin, Ringo. I'm tryin' real hard to be the shepherd. 

wondering in this case who the shepherd is? evil man? righteous man?


Sat, 05/08/2010 - 17:04 | 338304 AbbeBrel
AbbeBrel's picture

I gotta admit that at the first reading - this looked a lot like a posting from Mr. Ben D. Over.   But a quick reality check via GoogleNews supports that vielleicht (pardon my Deutsch) Mr. Gross' most recent double-barrelled blast from PIMCO forced a politically-correct response from the GuvMint - perhaps a bit late to to Save The World.  But au moins now the annointed agencies sont dans la merde.

Sat, 05/08/2010 - 17:13 | 338312 mogul rider
mogul rider's picture

Just another good reason to be a gold bitch.

 

Bitches unite!!!

Sat, 05/08/2010 - 17:31 | 338325 ExistentialSkeptic
ExistentialSkeptic's picture

Just another good reason to be a gold bitch.

I gotta say it feels pretty damn good!

Sat, 05/08/2010 - 17:39 | 338329 HEHEHE
HEHEHE's picture

Oh I am sure that sanctimonious prick Buffet knew all about it way before the public and has traded accordingly.   Mr. "the economy is strong" should be tied to the tracks on his little railroad.

Sat, 05/08/2010 - 20:47 | 338526 AN0NYM0US
AN0NYM0US's picture

and the rest of the story

 

U.S. Debt Shock May Hit In 2018, Maybe As Soon As 2013: Moody's

http://www.investors.com/NewsAndAnalysis/Article.aspx?id=532490

Sat, 05/08/2010 - 23:48 | 338680 MsCreant
MsCreant's picture

Yeah we have transparency all right. Their motives for shutting Moodys down became so transparent that this kind of thing is where many ZH folks went first. 

I don't know what is scarier, the idea that there is a conspiracy, or the idea there is not one.

Sun, 05/09/2010 - 01:16 | 338751 faustian bargain
faustian bargain's picture

I hope the administration is reading page two of that article:

As implied by the adverse scenario, a financial market shock from higher interest rates could precede the threat of a downgrade. In other words, investors might be less forgiving of U.S. fiscal policy than Moody's.

Siccing the SEC on Moody's looks to be a desperation move that won't work.

Sun, 05/09/2010 - 01:30 | 338765 i.knoknot
i.knoknot's picture

so, are the other rating agencies at risk as well until they downgrade the entire market to 'junk'?

Sat, 05/08/2010 - 21:31 | 338566 SWRichmond
SWRichmond's picture

Do you know what I think?  I think the dot gov law enforcement activity will ramp up as the economy rolls over in an attempt to quell rising public discontent.  If this is the case, then the next logical question to ask is this:  Is rising LE activity a reliable indicator of the proximity of a breakdown?

Sat, 05/08/2010 - 23:55 | 338687 MsCreant
MsCreant's picture

Or a lagging indicator, friend?

Sun, 05/09/2010 - 01:20 | 338754 faustian bargain
faustian bargain's picture

Maybe a simultaneous indicator. Everything's happening at once. A gruesome consommé of societal breakdown events.

Sat, 05/08/2010 - 23:57 | 338688 Oh regional Indian
Oh regional Indian's picture

Good point SWR.

I think a the number and ferocity of Taser Attacks (seems like the taser is the weapon of choice to subdue sheeple, it has such a "bolt of lightening" feel to it)) would be an excellent indicator.

And from my readings, that hockey stick moment is coming, just at the gentle curve up at this point.

Sun, 05/09/2010 - 01:31 | 338767 i.knoknot
i.knoknot's picture

nicely put.

Sun, 05/09/2010 - 00:32 | 338717 williambanzai7
williambanzai7's picture

Looks like Mr. Buffet is creating a RICO operation...

Sun, 05/09/2010 - 01:10 | 338748 williambanzai7
Sun, 05/09/2010 - 01:28 | 338761 i.knoknot
i.knoknot's picture

was this recent development considered 'unexpected' or 'expected'?

i couldn't tell from the article or comments

Sun, 05/09/2010 - 02:16 | 338791 Fraud-Esq
Fraud-Esq's picture

Wells notices = 8-K? Seems it's not as common as you would think (or hope), based on the 8-K rules (and interpretations of those rules) around 'materiality'. I've been very surprised by interpretations of materiality before. I would think a freaking ratings agency being directly challenged vis-a-vis their LEGITIMACY to rate is material. If not, you would think it became material when they saw the SEC's position with Goldman and the effect that's having on shareholders. But, truthfully, the blames lies with .gov

Gov could legislate that a Wells notice = 8-K within 48 hours. It's that easy.

After being an avid reader of SEC filings for ten years, I think the whole system of timeliness and materiality need to be revamped. 

Sun, 05/09/2010 - 06:32 | 338882 williambanzai7
williambanzai7's picture

Some people think material means cloth.

Sun, 05/09/2010 - 03:33 | 338828 Mark McGoldrick
Mark McGoldrick's picture

Ray McDaniel is the Chairman and CEO of Moodys.  On March 18th, the EXACT same day as the Wells Notice, he sells 100,000 shares (over a third of his holdings).  This is the largest sale that he has reported in over 7 years, and it's his only sale since May of last year. 

Coincidence or insider trading?

http://www.secform4.com/insider-trading/1195306.htm

 

Sun, 05/09/2010 - 08:36 | 338977 SWRichmond
SWRichmond's picture

All available federal LEOs are busy planting listening devices in my underwear drawer, attending pro-gun rallies, and infiltrating Tea Parties by posing as volunteer photographers. There are none left to investigate obvious crimes committed by wealthy political "contributors".  Besides, the wealthy can afford to mount an effective legal defense and are therefore expensive and time-consuming to prosecute.  Much easier to testi-lie some poor sop into a ten year federal stint.  Higher case turnover and better for your career.

I will not hold my breath waiting for anyone to do anything about this.

Sun, 05/09/2010 - 09:30 | 339040 King_of_simpletons
King_of_simpletons's picture

US debt shock may hit as early as 2013: Moody's

 http://www.investors.com/NewsAndAnalysis/Article.aspx?id=532490

 

Sun, 05/09/2010 - 10:52 | 339157 Jim B
Jim B's picture

Could this be a veiled attempt to intimidate Moodys.....

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