Wednesday, June 24, 2009

Congress Knew There Was A Problem In 2003

The above link is to a report about the credit ratings agencies. I am reprinting the title and date of the report. Notice the date of this report, it is January 2003. Here it is:

Report on the Role and Function of Credit Rating Agencies in the Operation of the Securities Markets

As Required by Section 702(b) of the Sarbanes-Oxley Act of 2002

U.S. Securities and Exchange Commission

January 2003

If you go to the link and read just the Introduction of this report, you will see that everything and more that I have been trying to bring to the readers of MONEYTHOUGHTS has appeared in print as far back as January 2003. The Congress knows the score as it relates to the role the credit rating agencies play in the operation of the securities markets, and Congress had a responsibility to act to protect investors from the conflicts of interest that the report spelled out. Why did not Congress act in behave of the people? Hundreds of millions of people have money invested in the securities markets for a multitude of reasons. Saving money in a traditional savings account can not keep up with inflation. That is why people invest, to hedge against inflation and hopefully hold onto the purchasing power of their dollars. But, the Congress of the United States let the people on Wall Street fuck over everyone invested in our securities markets, and especially the bond market where many people thought their money was safe. To think that the alliance between Wall Street and Washington is going to suddenly disappear is nonsense. Business as usual will be with us again. Congress knows on what side their bread is buttered. MONEY TALKS AND BULL SHIT WALKS, and don't you forget it.

Stay tuned.


winslow said...

This is the problem with our present form of government....common sense looses out. The problem was evident in 2003, yet nothing was done. We know part of the solution today is the Rating Agencies, yet not a peep from those in power.

I wonder if short term limits would help?

Butch said...

Winslow, I would agree with the short term limits. Just because they have been around longer than dirt doesn't mean they are truely working for the people and not the all mighty $$$$$.

moneythoughts said...

Winslow and Butch, millions of people have been hurt by our federal government, and it is no wonder that they don't trust the federal government. But, we must continue to hammer on this point about the credit rating agencies until the media really picks up on how important this is. I maintain that the talking heads on TV, top to bottom, don't have a clue what the whole credit rating system means to the economic well being of this country. Someone needs to make the case to the American people over and over until enough people come to realize what the hell is going on.