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
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.