DOJ investigates S&P. Surprised? No.

You read it in this blog a few weeks ago.  Obama went from a AAA to a AA+ and I wrote that Geithner and his crew would launch an all out attack on S&P. As I predicted, the attack has begun. 

       Although no one can explicitly attribute the attack to Geithner or Obama, the New York Times has interviewed two unidentified government sources that say the probe by the Justice Department has begun. Of course, the probe disclosers say the probe began before S&P lowered Obama’s rating. Yes, I know S&P rates government bonds not Obama, but in my opinion, Obama owns the rating cut.

In the next few weeks, the talk shows will be furiously educating the American people on the credit-rating-gate ad nausea, but it is a genuinely important issue. Why? Because S&P rates the mortgage backed securities that were so toxic that the Fed had to bail out the banks, AIG and the bond peddlers like Morgan Stanley and JP Morgan.  That was just a short while ago. And as the Times suggests, S&P is paid by the banks, seriously big bucks, to rate the bonds.

I do not need to write more on this subject because it is just the beginning. By the way, S&P is paid by other countries, Greece, Italy, France and others, not the USA, to rate their bonds. During the hey day of the financial crisis, S&P reportedly reaped record profits as they bestowed their highest ratings on bundles of toxic loans.

  My source for this information is the Associated Press who published a story based on an article in the New York Times. However, unlike other AP stories, this one did not have any reporter attribution. I suspect the reporter is saving his byline for the book, and a book and a movie it will surely be. The story combines international intrigue, conflicts between friends in high places and conspiracies. The story is all about money and it is wrapped up in a low flashpoint toxic flammable bundle that has been ignited by the mere replacement of a single “A” with a little old “+” sign.

Follow this saga with me or with the Associated Press, but please follow it. We are all about to get educated on the fragility and the high level conflicts inherent in a global system of fund raising precariously balanced on the razor's edge of organizations like S&P. Who are they anyway? Where did they go to college? Did they work for Goldman Sachs too? Are they democrats? We will soon all be experts.

And the race for POTUS? Perry will be chiming in at any minute. Romney will not know what to say and Huntsman will not say anything for the time being.