Just another Reality-based bubble in the foam of the multiverse.

Sunday, January 04, 2009

They Couldn't Fail to Fail

Darth Cheneyburton spews the new Party line for the weak-minded.

The lie quoted chapter and verse from Limbaugh to Hannity and all points in-between: the economic crisis is a progressive liberal Democrat invention to win the election.

This, despite constant warnings from economists like Paul Krugman over the last 10 years about the consequences of economic bubbles with unraveling banking and securities regulations.

The facts: regulators within the government have been trying to get the S.E.C. to deal with the Ponzi scheme that the stock market has become for years.

Susie Madrak quotes The New York Pravda, which is finally noticing something funny has gone on:

...The American International Group, Fannie Mae, Freddie Mac, General Electric and the municipal bond guarantors Ambac Financial and MBIA all had triple-A ratings. (G.E. still does!) Large investment banks like Lehman and Merrill Lynch all had solid investment grade ratings. It’s almost as if the higher the rating of a financial institution, the more likely it was to contribute to financial catastrophe. But of course all these big financial companies fueled the creation of the credit products that in turn fueled the revenues of Moody’s and Standard & Poor’s.

These oligopolies, which are actually sanctioned by the S.E.C., didn’t merely do their jobs badly. They didn’t simply miss a few calls here and there. In pursuit of their own short-term earnings, they did exactly the opposite of what they were meant to do: rather than expose financial risk they systematically disguised it.

But Pravda would have you believe it's all a result of irrational exuberance.

One knows better. This is Company policy. Chaos is the plan.

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