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Senate Probing S&P Downgrade

Tyler Durden's picture


If anyone thought that the Congressional subpoena of Meredith Whitney was taking it too far, you ain't seen nothing yet. According to flashing headlines, the idiots in the Senate now have S&P firmly set in their sights. Reuters adds that, "the Senate Banking committee has begun probing last week's decision by Standard and Poor's to downgrade the U.S. credit rating, a committee aide told Reuters on Monday. The aide said the panel was gathering information about the S&P move but no decision had been made on whether it will hold hearings into the downgrade. But, the aide added, all options were being weighed." At least this action did not involve the Feds and a SWAT team breaking into the company's headquarters unlike a comparable escalation in Italy. We are currently conducting a Lexis-Nexus search to find when the last time that a rating agency upgrade of a nation resulted in the type of prosecution which the glaringly terrorist and racist S&P (in the US) and S&P and Moody's (in Italy) are subjected to currently. We will be sure to bring you the results as soon as have them. We are confident the search will be very, very fruitful. In the meantime, keep an eye on the FBI's most wanted terrorist list. The face below may soon be staring at you from it. And if not, Deven Sharma should prepare for a lifetime of body cavity searches courtesy of the TSA.


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Mon, 08/08/2011 - 17:11 | 1539429 NotApplicable
NotApplicable's picture

Squeezin' the Sharma?

Mon, 08/08/2011 - 17:24 | 1539479 andybev01
andybev01's picture

Thou shalt not speak the states name in vain.

Mon, 08/08/2011 - 17:42 | 1539560 Rahm
Rahm's picture

Nationalize S&P?

Mon, 08/08/2011 - 19:13 | 1539864 Libertarians fo...
Libertarians for Prosperity's picture

S&P analysts should be paid from a pool of money which is invested in S&P's various recommendations.  Maybe they could be given a minimal, industry-standard salary, but the bulk of their income should be dependent on the accuracy and competency of their own ratings.

Isn't that how the real world works anyway?  Pay-based performance?

This way, they could rotate their own income out of US treasuries and into BofA equity, which is currently rated the highest recommendation S&P offers. 

Without some skin in the game, there really is no point to their ratings.  Even that, though, isn't any justification for their existence.  Investors and fund managers should do their own due diligence, rather than relying on some junior varsity ratings agency that's so utterly incompetent they completely missed the entire financial crisis.

Mon, 08/08/2011 - 20:02 | 1540034 Thomas
Thomas's picture

I would love to testify in front of Congress as to why I downgraded US debt. I would create some viral Youtube footage.

Mon, 08/08/2011 - 17:47 | 1539578 tom a taxpayer
tom a taxpayer's picture

If the downgrade fits, you must acquit.

Mon, 08/08/2011 - 23:08 | 1540847 Widowmaker
Widowmaker's picture

Ha ha!

I remember shaking JC's hand one time.

His diversion strategy with Simpson was brilliant.

Mon, 08/08/2011 - 17:25 | 1539494 Rick64
Rick64's picture

Senate probings, well I know Barney must be excited.

Mon, 08/08/2011 - 18:19 | 1539692 drbill
drbill's picture

That statement makes me queasy on several different levels!

Mon, 08/08/2011 - 17:47 | 1539579 RacerX
RacerX's picture

No squeeza da Sharma!

Mon, 08/08/2011 - 20:15 | 1540075 knukles
knukles's picture

Here's the deal, Senator.  I downgraded your bonds and the fucking prices went up.  And you're asking me questions?

Mon, 08/08/2011 - 23:14 | 1540910 StychoKiller
StychoKiller's picture

What the Senate should be "probing" is:  WHY haven't Moody's and Fitch downgraded the US Govt as well?

Mon, 08/08/2011 - 23:37 | 1541016 sgorem
sgorem's picture

They should've been investigating back in 2007-'08 when the S&P DIDN'T DOWNGRADE THE BASTARDS! FUCKING HANG THE SENATE, THE HOUSE, AND THE REST OF THE FUCKING CROOKS IN DC, from all the DC lamp posts!! WE need to import some of that LONDON shit here......hopefully, it's coming..........

Tue, 08/09/2011 - 07:33 | 1541795 DrunkenMonkey
DrunkenMonkey's picture

You want to import gangs of feral immigrant father-less youth that have been raised on a diet of bullsh*t (mainly-US sourced) music videos, the mantra of individualism and 'rights, not duties' rhetoric ? Be my guest.

Mon, 08/08/2011 - 17:14 | 1539436 oogs66
oogs66's picture

this is ridiculous....truly ridiculous...couldn't be our fault, has to be the rating agency fault?

Mon, 08/08/2011 - 17:19 | 1539465 markmotive
markmotive's picture

Typical, desperate self-preservation.

Mon, 08/08/2011 - 17:37 | 1539541 redpill
redpill's picture

This downgrade nonsense simply won't do. They will make an example out of S&P.

Mon, 08/08/2011 - 17:41 | 1539557 TheFourthStooge-ing
TheFourthStooge-ing's picture

This exchange took place on October 24, 2011 during hearings held by the Senate Committee on Increasing Irrelevancy:

Senator Dick Drippinz (RD - Pennsyltucky): Mr. Sharma, the S&P report on the downgrade to AA+ indicates that one of the factors involved in this decision was, and I quote, "the advanced stage of political douchebaggery on Capitol Hill." It's easy for people to sling mud without understanding the difficult work done by the honorable members of this august institution. For the record, can you cite a specific example of this so-called douchebaggery?

Mr. Deven Sharma, S&P: The first thing that comes to mind is this very hearing.


Mon, 08/08/2011 - 18:58 | 1539826 happel
happel's picture

More finger-pointing. Nothing new here.

Mon, 08/08/2011 - 17:15 | 1539438 Mister Ponzi
Mister Ponzi's picture

I remember when S&P (or was it Moody's?) downgraded Japan, the head of the rating company and the responsible analyst had to appear in front of a parliamentary committee and answer questions like: "What the hell did you think downgrading our country to the level of Botswana???"

Mon, 08/08/2011 - 17:15 | 1539443 Transitory Disi...
Transitory Disinflation's picture

horse, door....

Mon, 08/08/2011 - 18:00 | 1539623 tom a taxpayer
tom a taxpayer's picture


Yes, but it is a Frankenstein monster, not a horse let loose. One reason S&P has the balls to downgrade the U.S. govt is that the U.S. did not have the balls to prosecute S&P for its role in the greatest financial crimes in U.S. history. 

Now, by downgrading the U.S., the S&P can simultaneously 1) distinguish itself from Moody's as a marketing tactic, and 2) have an excellent defense to any prosecution for alleged past crimes by claiming that prosecution is retribution for the downgrade. 

The govt allowed S&P to grow into a Frankenstein monster. "It's alive!"


Mon, 08/08/2011 - 18:26 | 1539713 Jasper M
Jasper M's picture

That's . . . actually, pretty astute! Congrats.

Mon, 08/08/2011 - 19:15 | 1539895 PaperBugsBurn
PaperBugsBurn's picture

I don't understand why you folks don't see what's obvious as hell to me.


S&P are the banksters. This is why there was no prosecution in 08. The banksters do not want to risk their lucrative investments in the rest of the world by forcing QE3 on a rebellious world. They really do want medicare, medicaid, social security and every other social safety net cut so they can maintain the dollar's status. the politicians know that if they comply they are out of a cushy job. They are showing the US gov that they are prepared to go the SDR route if need be. The US market is kaput for them with no future growth potential (because they de-industrialized you).


Am I the only one who sees this or what??

Mon, 08/08/2011 - 21:36 | 1540388 i-dog
i-dog's picture

"Am I the only one who sees this or what??"

Sees what? The glaring contradictions in your analysis?

First you say the banksters want cuts to benefits [BTW: No, they don't! ... they want to bankrupt the country (in order to call in the collateral - American serfs and their encumbered property) ... their core investments are now elsewhere]:

"They really do want medicare, medicaid, social security and every other social safety net cut so they can maintain the dollar's status."

Then you say [correctly]:

"The US market is kaput for them with no future growth potential (because they de-industrialized you)."

The bankstas aren't "showing" the US an SDR "if need be" ... they are planning on an SDR as soon as the USD crashes (which they are currently trying to delay into next year ... when all their other ducks should be in a row).

Mon, 08/08/2011 - 18:35 | 1539749 Kayman
Kayman's picture

Too clever by half. The U.S. government was mute before, now they've been outed and are claiming it is S+P's fault.

To paraphrase ol' Warren. Give the guy a Quintuple A rating for effort. 

Mon, 08/08/2011 - 17:15 | 1539446 b_thunder
b_thunder's picture

Congress shoudl simply remove special privileges and let the holders of "AAA" rated CDOs to sue S&P for malpractice!    S&P woudl disappear before and of the month, maybe before the and of the week!


Mon, 08/08/2011 - 18:11 | 1539665 Bobbyrib
Bobbyrib's picture


Mon, 08/08/2011 - 18:14 | 1539670 Mec-sick-o
Mec-sick-o's picture

And that would be the And of S&P

Mon, 08/08/2011 - 17:15 | 1539447 yabyum
yabyum's picture

If anything the S&P was to kind. We suck! Time for some new faces in DC.

Mon, 08/08/2011 - 17:30 | 1539511 fuu
fuu's picture

I read that as feces.

Mon, 08/08/2011 - 18:15 | 1539676 Mec-sick-o
Mec-sick-o's picture

A very comprehensible Freudian Slip.

Mon, 08/08/2011 - 18:25 | 1539707 max2205
max2205's picture

He isn't white or an American. These rating agencies, whewww.

Mon, 08/08/2011 - 17:16 | 1539449 Catullus
Catullus's picture

Give them the Meredith Witney treatment: hit the ignore button. 

Mon, 08/08/2011 - 17:19 | 1539451 lolmao500
lolmao500's picture

Just figured out why the US still has 55 000 troops in Germany... it's to protect the German government from the German people... I mean, Germans are gonna be pissed when they see their government has pledged 133% of their GDP to backstop Euro debt... and when it all fails and they try to overthrow the German government, the US troops will be there to save ``democracy`` once again!


Next on the US government agenda : kidnap the SP CEO kids at school for a few hours and then give them back... so he understands the message.

Mon, 08/08/2011 - 17:16 | 1539452 President Palin
President Palin's picture

But ... but ... the Teleprompter-In-Chief told me that the USSA will always be AAA!

Mon, 08/08/2011 - 17:18 | 1539461 Flakmeister
Flakmeister's picture

And that sums up Sarah's understanding of the situation....

Mon, 08/08/2011 - 17:51 | 1539598 -Michelle-
-Michelle-'s picture

Well, no, I'd say that sums up Obama's understanding of the situation.

Mon, 08/08/2011 - 18:07 | 1539657 Flakmeister
Flakmeister's picture

The comments here are hilarious, any dig at an idiot such as Palin is taken as a knee-jerk defense of Obama. No fucking wonder this country is as fucked as it is...Go educate yourself about how we got here in the first place...

Obama is a failure, anyone elected after the financial coup d'etat that was TARP was doomed to be a failure. The only thing that I could say in defense of Obama is that if McCain and that fucking twerp from Wasilla were elected the country would be in an even bigger mess.

Mon, 08/08/2011 - 18:17 | 1539684 -Michelle-
-Michelle-'s picture

I would back up a bit and see what your own knee-jerk response was to a comment about Obama. I don't want either of them.

Mon, 08/08/2011 - 18:47 | 1539777 Flakmeister
Flakmeister's picture

If it was one where I called out somebody for calling him a Marxist ideologue, I stand by my statement that he is many things, but a Marxist ain't one of them.

You can bitch and moan about O all you like, just get your rhetoric straight. As for Palin, she makes W seem downright erudite.

Mon, 08/08/2011 - 19:03 | 1539850 -Michelle-
-Michelle-'s picture

I was referring to your post at 17:18, just a few notches up.

I neither bitch nor moan about Obama. What would be the point? I just want all of them to leave me and my family alone.

As for Palin, the only one talking about her is... you.

Mon, 08/08/2011 - 19:11 | 1539881 Flakmeister
Flakmeister's picture

For the humor impaired...

I suggest you make the connection between the poster "President Palin" and my comment.. Jeezus...

Mon, 08/08/2011 - 19:40 | 1539969 adissidentishere
adissidentishere's picture

In what way is he not a marxist? 

Mon, 08/08/2011 - 20:38 | 1540156 Flakmeister
Flakmeister's picture

Well, for one he didn't line up the Banksters and have them shot.... He caved in on a single payer option, he has done nothing to limit the corporate influence in politics.... On most, if not all his policies he is well to the right of Eisenhower, (ok, Ike didn't have to deal with Don't Ask, Don't Tell). He folded like a cheap suit on the Bush tax cuts and debt ceiling negotiations.... Call him a moderate corporate fascist... he ain't even a socialist. 

Mon, 08/08/2011 - 17:16 | 1539454 Nascent_Variable
Nascent_Variable's picture

The federal government is an absolutely despicable entity, all the way from the top down.

Mon, 08/08/2011 - 17:17 | 1539455 user2011
user2011's picture

Two parties play the game of chicken, and now got blamed as one of the reason for the downgrade. 

The whole world is pissed.   With Trillions gone in the stock market, these scumbag lawmakers are now trying to blame the agency and punish them.  

Bunch of crooks !!  

Mon, 08/08/2011 - 17:17 | 1539457 faustian bargain
faustian bargain's picture

Their desperation is delicious.

Mon, 08/08/2011 - 18:35 | 1539745 nmewn
nmewn's picture

Yes, it is. I like mine ice cold.

Mon, 08/08/2011 - 17:20 | 1539467 unky
unky's picture

Bullshit, this was a set up. Wall Street, Rating Agencys, Corrupt government officials and the Fed are all working together.

Just to show something to the public...

Mon, 08/08/2011 - 17:28 | 1539500 Reptil
Reptil's picture

yeah someone has to break the news. the modus operandi is that TPTB have someone "opposite" to them do that. doesn't matter if they're part of the "team" or not.
if they'd tell America they looted it, and destroyed the economy themselves (or at the very least gave it a big push into the beak of the vampire squid) then the blame would befall themselves.

whatever happens, "market confidence" will not be restored if S&P is put on the chopping block. maybe the "free market" will be part of the "collateral damage", they certainly seem to want to go that way.

this quote came to mind: First the free market dies, then dies democracy." Folker Hellmeyer

Mon, 08/08/2011 - 17:22 | 1539474 wombats
wombats's picture

Hmm.  I wonder is they will have a banjo player on hand for his "exam".  Shades of Deliverance for his probing.  I sure hope they give him some sedatives and Vaselline before they have their way with him.

Mon, 08/08/2011 - 17:23 | 1539475 treemagnet
treemagnet's picture

The messenger always gets it.  What liberal fuck is heading up this committee of banking 'cause its just gotta be an Obama man.

Mon, 08/08/2011 - 17:38 | 1539550 Confused
Confused's picture

What liberal? Lets get real. The different puppets serve the same master. The ending is known by them. This is all for the sake of theatre.


Mon, 08/08/2011 - 17:48 | 1539583 treemagnet
treemagnet's picture

Theater agreed - but this is Chicago style, and the guy that owns this mess is the very same who can watch markets tank when he stares into the teleprompter for his next thought.  Puppets for sure, but like you say, lets get real. 

Mon, 08/08/2011 - 18:28 | 1539716 Confused
Confused's picture

Just to push buttons, how is Chicago style different from Texas style?

They fuck us either way.


I just hate to see people throw the word liberal around. Because at this point its totally meaningless. Just as conservative is.

Mon, 08/08/2011 - 19:10 | 1539861 hedgeless_horseman
hedgeless_horseman's picture

I am no poli-sci PhD, but this is textbook Argentina style.  The Kirchners are a lot of things (all bad), but liberal is not one of them.  Fascism is more right than left, right?

Mon, 08/08/2011 - 21:47 | 1540437 treemagnet
treemagnet's picture

Because as bad as it is, Texas style is a damn sight better and truer to the roots of libertarianism than crooked Chicago style Obamaesque politiking.  For the same reason libertarians end up voting repub vs lib.   Go police someone else you quasi independent fuck, you're boring me.

Mon, 08/08/2011 - 17:23 | 1539476 Gringo Viejo
Gringo Viejo's picture

Clowns to the left of me.....

Jokers to the right..............

I'm stuck in the middle with you.

Mon, 08/08/2011 - 17:28 | 1539503 Gringo Viejo
Gringo Viejo's picture

S&P fucked with the Con Game and now they're gonna pay for it.

Mon, 08/08/2011 - 17:25 | 1539478 NERVEAGENTVX

Hold the fucking phone! Wasn't it the credit rating agencies that lobbyed congress sometime in the 90's to allow their credit ratings to have first amendment protection and their ratings should only represent "journalistic opinion"? Oh how the tables suddenly turn when it's uncle sam that gets kicked in the nuts by these same agencies. The irony in this country has reached full circle. IMHO

Mon, 08/08/2011 - 17:23 | 1539482 Kayman
Kayman's picture

Senator Windbag (R) : So Mr. Sharma, how do you, a foreigner, have any say whatsoever about the excellent credit of these here United States.

Mr. Sharma:  Well sir, you have no ability to repay your existing debts, never mind increasing future debts.

Sen. Windbag: Well gentleman, I told you he was a foreigner. I move to string him up.

Senator FlimFlam (D) : I move that we buy some rope with this here USA credit card.  It's still works... doesn't it ?


Mon, 08/08/2011 - 17:24 | 1539488 Debtless
Debtless's picture

Let's be sure to spend a lot of money we don't have on the investigation. 

Someone please nuke DC.

Mon, 08/08/2011 - 17:24 | 1539489 Id fight Gandhi
Id fight Gandhi's picture

Denfinately racist! How dare they

Mon, 08/08/2011 - 17:24 | 1539490 gwar5
gwar5's picture

"Marxism never sleeps.... so I slipped them a mickey, they needed the rest."  -- unknown capitalist.

Mon, 08/08/2011 - 17:27 | 1539496 squeal
squeal's picture

This is like the dipshit at the front of a long-ass line, (on labor day at the grocery store, for example) yelling at the credit card company over his iphone as they try calmly to explain to him that his credit limit has been breached.

"There must be some mistake"

"I'd like to speak with your manager"


Meanwhile the people in line glower and risk of a parking lot ass-kicking goes up exponentially after the 5 minute politeness gracce period is expended......

Mon, 08/08/2011 - 17:28 | 1539501 Poule Mouillee
Poule Mouillee's picture

In the name of Joseph Raymond McCarthy, I hope they get to the bottom of this!

Mon, 08/08/2011 - 17:29 | 1539508 chump666
chump666's picture

the US has lost the plot, pathetic.  s&p did somthing that the weak stupid pointless leaders can't do, which is deal with reality.

Mon, 08/08/2011 - 17:30 | 1539514 ElvisDog
ElvisDog's picture

That's hilarious, because the time to put the wood to Sharma and S&P was before the downgrade. Even they are successful in somehow getting S&P to rescind, what good does that do and how would that look to the rest of the world?

Mon, 08/08/2011 - 17:32 | 1539518 mynhair
mynhair's picture

Schmucky Schumer even know what S&P stands for?

Mon, 08/08/2011 - 17:53 | 1539606 Ganja Jane
Ganja Jane's picture

He's often in my neck of the woods; Next time I see him, I'll ask him on video.

Mon, 08/08/2011 - 17:32 | 1539521 Eireann go Brach
Eireann go Brach's picture

Snooki will be chairing the senate meeting I heard!

Mon, 08/08/2011 - 17:46 | 1539574 RichardENixon
RichardENixon's picture

I'd watch that

Mon, 08/08/2011 - 17:48 | 1539585 Ganja Jane
Ganja Jane's picture

Yeah? They're gonna pay her $10,000 to teach them how to fist pump like Binghamton University did?


<sarcasm>It's covered by the 'Congressional Activity Fee' which is billed to the taxpayer.</sarcasm>

This would be an embarassment to any learning institute that actually educates. *Shakes head* What does it say about education standards? This doesn't help the mainstream discussion along:

There aren't any standards; it's all a lie.

Mon, 08/08/2011 - 17:33 | 1539522 silvertrain
silvertrain's picture

The Senate Better be easy..All kind of dirty laundry may come to light..Better yet,hell yeah, lets go for it..Bring all the books and canciled checks and lets do this on tv really large in front of the world..

Mon, 08/08/2011 - 17:33 | 1539527 Critical Path
Critical Path's picture


And to think we pay for this shit



Mon, 08/08/2011 - 17:33 | 1539528 Atomizer
Atomizer's picture

Paper shredder party tonight.


Mon, 08/08/2011 - 17:34 | 1539531 Rick64
Rick64's picture

Your tax dollars at work. These Senate committees have a proven track record of accomplishing nothing. Dog and pony show continues. This downgrade would never have happened if it wasn't sanctioned by the elite.

Mon, 08/08/2011 - 17:34 | 1539532 I did it by Occident
I did it by Occident's picture

Can't wait for the congressional testimony from the S&P.  It can be braodcast live and expose the circular firing squad that is our congressional "leadership". 

Such a spectacle I bet it would not only confirm that S&P downgrade was correct, but that it was not nearly enough.  A case of "thou dost protest too much"


Mon, 08/08/2011 - 17:34 | 1539533 tpberg7
tpberg7's picture

Puleeez don't squeeze the Sharma, Bitchez!

Mon, 08/08/2011 - 17:36 | 1539534 falak pema
falak pema's picture

Sharma's karma not Dharma?

 The search for white collar criminals moves from the ultra guilty to the doctors holding the thermometer! WHat a perverted way the inquisitorial mind works of guiltier than hell congressmen who looked the other way since 2007.

S&P is now Kaizer Soze! Heretic and usual suspect on the hoodlum lineup. Along with DSK, Julian Assange...we need another fall guy!


Mon, 08/08/2011 - 17:50 | 1539535 Ganja Jane
Ganja Jane's picture

I suspect this is more Kabuki theater to distract the media and the free-range sheeple from finding out what's really been and is still going on. The credit rating is BS like any other economic stat that stems from formula's configured to -more or less- occlude the truth. Case in point: US employment numbers, off the books military spending, CPI and my personal favorite: The spot prices on pm's.

The Obama administration has provided the most entertainment out of all the others in my 35 year lifetime.

Mon, 08/08/2011 - 17:36 | 1539539 silvertrain
silvertrain's picture

we should have got downgraded just for spending a ton of money to see how long it takes a shrimp to have a heart attack on a treadmill..

Mon, 08/08/2011 - 17:37 | 1539542 dick cheneys ghost
dick cheneys ghost's picture

The ones that are not investigating S&P are in Israel lining their pockets.....

Mon, 08/08/2011 - 17:37 | 1539543 Long-John-Silver
Long-John-Silver's picture

Probing Bitchez!

Mon, 08/08/2011 - 17:44 | 1539569 Poule Mouillee
Poule Mouillee's picture

Long Pointy Things!

Mon, 08/08/2011 - 17:37 | 1539544 tpberg7
tpberg7's picture

Go Sharma!  Go Buckeyes!

Mon, 08/08/2011 - 17:37 | 1539546 Professordoomfinger
Professordoomfinger's picture

Leave the maid alone, Mr. Sharma!

Mon, 08/08/2011 - 17:38 | 1539549 Pretorian
Pretorian's picture

Stage the show to fake again "Landing on the Moon", US have done this so the Europeans wont scream again when this hits them. Anyone stuppid to think downgrade was just accidental.

Mon, 08/08/2011 - 17:59 | 1539622 magpie
magpie's picture

That's fair play enough, it would be nicer though to see the UK get a piece of the action...

Mon, 08/08/2011 - 17:45 | 1539570 Arch Duke Ferdinand
Arch Duke Ferdinand's picture

Folks, all thats left now are Wars, Culling of Humanity and then even more Wars.

It is time for Me, Arch Duke Ferdinand to make a state visit to London, in an open landau of course, and traverse the city until something happens.

...Grab your bags of popcorn, snuggle down with the wife or the dog and
follow the play by play.

*****OT: 2 min hilarious video.....

Mon, 08/08/2011 - 23:27 | 1540976 StychoKiller
StychoKiller's picture

If London doesn't work out, you have a standing invitation to visit Dealey Plaza.  There's a convertible limo available, was only used once!  :>D

Mon, 08/08/2011 - 17:44 | 1539573 navy62802
navy62802's picture

This is precisely the reason US debt will get downgraded again in the near future. Instead of actually trying to figure out how to fix the national debt problem, the Congress thinks this is all just another political game. To them, it's nothing more than a chance to create their next campaign platform. We have a group of "leaders" who are not interested in the good of the people they represent (i.e. the nation at large). They're interested in campaign donors, lobbyists and the next election.

Mon, 08/08/2011 - 18:36 | 1539751 Stax Edwards
Stax Edwards's picture

Yep.  Aint it a bitch when that whole free markets thing gets in the way of their plans.

S&P sees reality and does not want to be left behind.  Our politicians are oblivious to the message.

Mon, 08/08/2011 - 17:47 | 1539576 Quinvarius
Quinvarius's picture

That is what Madoff would have done if he had the power of government.

Mon, 08/08/2011 - 17:47 | 1539577 chump666
chump666's picture

watching london riots...Obama should be sh*ting his panties.  f*uck with the people, and they will rise up. 

Mon, 08/08/2011 - 18:04 | 1539580 razorthin
razorthin's picture

Now do the right thing, S&P, and downgrade to junk the entire ponziverse.

Mon, 08/08/2011 - 20:50 | 1540067 Taku
Taku's picture

They'd be locked up by then.

How dare they not tow the line!

This was the "wrong time, and the wrong decision" (Roubini)
Had S&P only waited until, y'know, the elites got out first.

You don't just tell the truth whenever you want, where do you think you are?
You do it when it's the right time and when a downgrade isn't needed.

Mon, 08/08/2011 - 17:49 | 1539582 Scalaris
Scalaris's picture

More theatre from your dear politicians. These incompetent fools are actually spending time persecuting S&P instead of contemplating the dire state of the economy and how they can do the slightest in order to at least ensure that the centre of Western Civilization doesn't end up as a complete joke in the very fast nearing and foreseeable future.

Obliterated middle class, exploding impoverishment through massive unemployment, complete removal of the American manufacturing base, substantial decline of whatever accumulated prosperity America achieved in the past decades that made you the envy of the world and of course further rapid disfranchisement of your lower socioeconomic classes resulting in incubation of terrifying numbers of criminal behaviour indicating the glaring social rift between the top 0.1% wealth owning and the rest is apparently Standard & Poor’s fault who merely revealed that the Faberge is nothing more than an expired melted chocolate kinder egg.

Where was the probing 3 years ago when S&P was giving away AAA ratings like hotcakes hours before AIG and Lehman’s bankruptcy? U.S. Securities and Exchange Commission didn’t even blink, let alone mention anything about ramifications for any one of the three de facto rating agencies. Is this a joke? I don't even live in the US and it makes me furious at the way YOUR Government is playing fast and loose with American's livelihoods for decades now. Disgraceful.

I’m out of whisky and the butler is nowhere to be seen – GOD DAMNIT NIGEL

Mon, 08/08/2011 - 19:57 | 1540016 Got my Towel
Got my Towel's picture

Very well said.

Mon, 08/08/2011 - 21:25 | 1540340 Rick64
Rick64's picture

Where was the probing 3 years ago when S&P was giving away AAA ratings like hotcakes hours before AIG and Lehman’s bankruptcy?

The Permanent Subcommittee on Investigations has scheduled a hearing, "Wall Street and the Financial Crisis: The Role of Credit Rating Agencies," on Friday, April 23, 2010, at 9:30 a.m., in Room G-50 of the Dirksen Senate Office Building.

This hearing will be the third in a series of Subcommittee hearings examining some of the causes and consequences of the recent financial crisis. This third hearing will focus on the role of credit rating agencies in the financial crisis, using as case histories the credit rating agencies of Standard and Poor’s and Moody’s. A witness list will be available Monday, April 19, 2010.

They were questioned but nothing was done as usual.

Mon, 08/08/2011 - 23:24 | 1540964 Scalaris
Scalaris's picture

Appreciate the reply regarding the Subcommittee's hearing which I also came across a while ago and which naturally yielded no results, nor it gathered an iota of steam from the MSM. It seems that misleading pension funds isn't as unAmerican as downgrading the US rating to its real level in order to be appropriately sensationalized to this degree.  

Mon, 08/08/2011 - 17:49 | 1539588 JohnG
JohnG's picture

Namaste, Devon.

Mon, 08/08/2011 - 17:51 | 1539597 SwingForce
SwingForce's picture

Actually? This is tantamount to the sniper on the grassy knoll, except we know who he is, AND he's protected by 1st Amendment rights. And which language does he speak? They downgraded DEBT yet bonds went up and stocks sank? Oh, what's that whisper? I need to wait until tomw at 2:15pm? Wink wink, nod nod, ok. All we be revealed......terrorists.

Mon, 08/08/2011 - 17:54 | 1539611 MarcusAurelius
MarcusAurelius's picture

This is truely funny to me. I guess the idiots in congress firmly believe that they lead the trends instead of following or reacting to them? The S&P downgrade had absolutely nothing what so ever to do with the huge sell off. In case the fools at the senate were too stupid to notice, it had already started about a month ago. Does anyone really give two shits about a credit rating of AAA versus AA+???? In the larger bear market or credit contraction that started over five years ago this is simply the continuation pattern that was held back by those wacky, wonderful, interventionists at the government making this far worse than it had to be. Funny how the inflation crowd are silenced by the reassertion of the trend that never left (not once) which is deflation. Those that were calling for massive inflation have no idea what money really is. When Bernanke said there was very little core inflation I knew he was right.

    Well I am sure the plunge protection team will do their very best to react. Lets see if they really do have this magical power over the market that they can make rise or fall at will. Or will this be the next leg down that was only delayed not stopped. in the day when "less bad rules" even a AA+ credit rating is incredibly generous. If it were you or me that had massive amounts of unpayable debt, would we be given more credit cards so we could continue to spend or would we be pushed into insolvency when creditors realized they had been had? Hmmm..... I wonder what our rating would be? AAA???? or would our FECCO score be so low that not even the riskiest of lenders would touch us with a ten foot pole???? I wonder????

Mon, 08/08/2011 - 18:45 | 1539772 Stax Edwards
Stax Edwards's picture

Here Here!! +1000 on your first paragraph there.  These dumb f'n politicians are so caught up in their DC bubble they can't see the forest for the trees.

I think the word is getting out. The revolution is occurring right under their noses and they think we still care about whose fault this is.  Pathetic, absolutely pathetic.

I think people care more about solutions and I for one applaud S&P for sticking their nose in it.  They just don't get it.  Lets vote em all out every election until we get some who do get it.

Mon, 08/08/2011 - 18:00 | 1539618 Tree of Liberty
Tree of Liberty's picture

Using the fear of the Subpoena to prevent what must come next:

Downgrading municipal and State bond ratings are next

me thinks that Pandora's Box is opened and will be ugly when California wants her next Bridge Loan! 

Mon, 08/08/2011 - 17:57 | 1539620 oogs66
oogs66's picture

where is the probing of the goldman director, from mckinsey who was giving away goldman inside information like candy?  this guy at least seemed to be doing what he thought his job was

Mon, 08/08/2011 - 18:00 | 1539626 whaletail
whaletail's picture

I think the answers that the committee will get won't be the one's they want.

And, I see Mr. Sharma got his MBA from THE Ohio State University. Not a good year for OSU. 

Mon, 08/08/2011 - 18:01 | 1539630 Man with no name
Man with no name's picture

At this rate I will not be surpised to hear the phrase "Papers please". 

Gestapo bitchez!

Mon, 08/08/2011 - 18:01 | 1539633 Anonymouse
Anonymouse's picture

Finally something worth Congress's attention.  The first big scandal to hit America since the steroid and MLB anti-trust hearings.

S&P is just lucky that SEAL Team 6 went down as I'm sure they would have become involved.  This is national security after all.

[For the brain-dead, I'll be explicit.  </sarcasm>]


Mon, 08/08/2011 - 18:05 | 1539644 Rusty_Shackleford
Rusty_Shackleford's picture

"Everything the State says is a lie, and everything it has it has stolen."
Friedrich Nietzsche

Mon, 08/08/2011 - 18:29 | 1539653 Cdad
Cdad's picture

More bankers, more probing of anti banker things, more chaos, more cronyism, more fascism, more HFT, more scalping, more arrests of law abiding citizens expressing themselves, more war, more deficit spending, more taxes...

What a great glide path we are on.

Start firing the bankers, already.  It's two years overdue!

Mon, 08/08/2011 - 19:24 | 1539907 Ms. Erable
Ms. Erable's picture

Start firing at the bankers, already.  It's two years overdue!

Fixed that last part for ya.

Mon, 08/08/2011 - 18:14 | 1539666 Threeggg
Threeggg's picture

"The aide said the panel was gathering information about the S&P move but no decision had been made on whether it will hold hearings into the downgrade"

Of course they will have hearings. Where else could we spend a billion dollars for everone to sit around and "Talk about it"

Those arabs are gonna start getting pissed about the price of oil, they may go Ghaddafi on us and demand Gold instead of dollars.

War 3.0 ?

Mon, 08/08/2011 - 18:13 | 1539671 Texas Ginslinger
Texas Ginslinger's picture

Do I understand this right - S&P downgrades the USA debt and says the main reason is because of political indecision.

So the response by the senate is to investigate S&P's decision..??

This is worse than bad theater, which is over in 2 hours.

Mon, 08/08/2011 - 20:22 | 1540089 slewie the pi-rat
slewie the pi-rat's picture

i dunno, T_gindrinker

why didn't the senate investigate when S&P announced they were considering the downgrade?  were they not concerned?  did they think this was some kinda joke?  too busy lunching with the lobbyists?  now, with the horses running down the freaking road, they are concerned about the barn door? 

did they not "get" that the "credit" of the USA was being ass-fuked~~~by them?  had they failed to take note of the word "ponzi" creeping up the google search list?

what were they thinking, especially when they allowed the debate to be framed in terms of "default"  all over the media and in the international dialoque, which included our beloved fuking communists telling us we must be "responsible" and take on more debt. 

personally, i think the real reason is that S&P heard the word default just about once too often from the national political and banking leadership, including 99 senators [one (1) out sick]. 

becuase of what they (the congress/senate) had done, the way they had done it, and the implications of the all-star can-kicking show, they received a slightly less than perfect grade from the Teacher and the promise of another "demerit" if this bullshit doesn't fuking cease, pretty damned quick, pdq, as in yesterday woulda been great.

so now, i guess they are gonna tell on the teacher and get out his/her "secret police" file, too!

Nanny Get Your Gun!

Mon, 08/08/2011 - 20:55 | 1540212 nodhannum
nodhannum's picture

They made "Der Fuehrer" unhappy on his birthday!

Mon, 08/08/2011 - 18:16 | 1539678 Piranhanoia
Piranhanoia's picture

Senator;  Mr. Sharma, will you kindly explain why your company did this?

Mr. Sharma;   Senator, I was informed this was only going to be a brief meeting?

Senator;  Are you not prepared to answer my questions?

Mr. Sharma, Certainly sir, but I will have to arrange to get the two semi trucks worth of documents in the building to give you a proper presentation and I expect we will be here a couple years.

Senator;  That will be fine pal.  

Mon, 08/08/2011 - 18:22 | 1539704 dwdollar
dwdollar's picture

This is the typical shenanigans you'd expect right before a mega-collapse.

Mon, 08/08/2011 - 18:25 | 1539709 markar
markar's picture

When in doubt with your head so far up your ass you don't know which end is up, hold hearings. Or, just pull a John Kerry and blame the Tea Party for the downgrade.

Useless, all.

Mon, 08/08/2011 - 18:28 | 1539720 Cow
Cow's picture

Members of the Senate Finance Committee

What a surprise.  Chuckie Schumer is on the committee.



Mon, 08/08/2011 - 19:09 | 1539874 rufusbird
rufusbird's picture

If the patient (US financial health) is not  crippled by a month of Congressional blather, it will be by the time their S&P investigation is drug up and down the world's press for a few days...Rufusbird

Mon, 08/08/2011 - 18:29 | 1539727 Boxed Merlot
Boxed Merlot's picture

Why can't these bozos just go on vacation and let the country run itself? Isn't that what we pay them for?

Like Ferris says at the end, "What? Are you still here? Go on, go home, it's over." (or something to that effect)

Mon, 08/08/2011 - 18:34 | 1539742 Miss Expectations
Miss Expectations's picture

This is GREAT news!!!  The BAA3 backup presentation will get to see the light of day! 

Mon, 08/08/2011 - 18:36 | 1539752 Bull and Co.
Bull and Co.'s picture

Yeah. Sure the mirror.


Mon, 08/08/2011 - 18:46 | 1539775 bigdumbnugly
bigdumbnugly's picture

"And if not, Deven Sharma should prepare for a lifetime of body cavity searches courtesy of the TSA."

hard to believe senator frank would let that juicy opportunity slip by to the tsa monkeys.

Mon, 08/08/2011 - 18:59 | 1539834 Cow
Cow's picture

Dude. Frank is not a Senator.  Bawney's in the House (so to speak)


Mon, 08/08/2011 - 18:47 | 1539776 glenlloyd
glenlloyd's picture

How completely predictable, don't deal with the real problem, go after the one's who question the ability of the US govt to actually make the right choices.

Mon, 08/08/2011 - 19:07 | 1539789 Rockfish
Rockfish's picture

This is the way we manage our educational system. Kids can't read? Must be the test.  I say we because we as a people put these people in charge.

Sad, sad for my children and thiers I would rather be poor and know my children will have a chance at a better life than mine.


Mon, 08/08/2011 - 19:04 | 1539854 grunk
grunk's picture

I think all this "ratings" stuff is crap.

It hurts the self esteem of the slower, less competitive countries.

From now on, no more keeping score. All countries get a blue ribbon.

Mon, 08/08/2011 - 19:04 | 1539856 aramsogo
aramsogo's picture

Body cavity searches by the TSA?? No, by the BOP.

Step 1. Sexual assault charge.
Step 2. Indictment and $2 million bail
Step 3. Suicide smock
Step 4. Hourly body cavity searches

Mon, 08/08/2011 - 19:05 | 1539860 PulauHantu29
PulauHantu29's picture

The First Step is understanding what you problem is and Congress and Barama still are ignoring the Elephant in the room....

Mon, 08/08/2011 - 23:37 | 1541026 StychoKiller
StychoKiller's picture

C'mon on honey, just loan me $20 more and I swear I'll NEVER have another drink!

Mon, 08/08/2011 - 19:09 | 1539872 Forgiven
Forgiven's picture

Of course, blame the messenger.  The people in DC are clearly ALL smoking crack, not just Marion Barry.

Mon, 08/08/2011 - 19:14 | 1539887 docj
docj's picture

So the US Senate - the World's Most Deliberately Arrogant Body - doesn't have time to pass a freaking budget but they somehow have time for this farce.

Good to know they still have their priorities in order. Sheesh.

Mon, 08/08/2011 - 19:29 | 1539932 Incubus
Incubus's picture

Freedom Fries!!!!!!!!!!!!!


awww yeah.  I knew our government (irrespective of house/senate) was a joke when I heard about freedom fries in my goddamned teens.

Mon, 08/08/2011 - 19:16 | 1539897 oa92000
oa92000's picture

S & P is a piece of shit it self...

Mon, 08/08/2011 - 19:19 | 1539908 Outlaw Of The W...
Outlaw Of The Wasteland's picture

537 bullets could take care of our problem in mordor on the potomac.


Then on to 85 broad street and 270 park ave.


Don't forget to kill the families.  First, last makes no difference.  Collective punishment is a must in this case.


"The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks. -Lord Acton

Mon, 08/08/2011 - 19:21 | 1539912 grunk
grunk's picture

Sunday night, on Bloomberg's "Downgrade" special, the head of the S & P said he had talk to others about the timing of the downgrade.

About an hour later another guest came on and wondered aloud if this was insider information.

There's probably a podcast somewhere.

Mon, 08/08/2011 - 19:21 | 1539913 Dugald
Dugald's picture

Whats the fuss...........SHOOT THE MESSENGER...........SOP

Mon, 08/08/2011 - 19:28 | 1539929 Die Weiße Rose
Die Weiße Rose's picture

someone should probe the Senate with a cattle prod

If you owe $14 trillion on a Credit Card and your yearly Income is $14 trillion at most during a crisis,

then your credit rating should be down-graded to Junk, because you are at highest risk of Default.

there is zero chance that the US are ever going to pay down $14 trillion Debt !

Mon, 08/08/2011 - 19:31 | 1539938 oa92000
oa92000's picture

US can print money , not you

Mon, 08/08/2011 - 20:19 | 1540083 Die Weiße Rose
Die Weiße Rose's picture

Yes we Can Print more Money too !

and increase your costs of Living, Prices and Interest Rates !

free Money is not just a US privilege,

whatever you can do, we can do better !

London is on fire!

Mon, 08/08/2011 - 19:33 | 1539947 Whoa Dammit
Whoa Dammit's picture

The senators are just pissed because they thought they should have gotten a free Slurpee with that downgrade.

Mon, 08/08/2011 - 19:37 | 1539959 Chris88
Chris88's picture

Well I sure hope the Senate finishes with these hearings in an expedient manner so they can get back to holding hearings on important which baseball players are sticking needles in their asses.

Mon, 08/08/2011 - 19:45 | 1539979 pan
pan's picture

Fascism bitchez!


Mon, 08/08/2011 - 19:49 | 1539988 Garbo
Garbo's picture

Looks like the US is using Argentina-style tactics. Earlier this year CF Kirchner declared that any economist, journalist, anybody saying the inflation rate was too high was to be arrested!


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