Standard & Poor's made a tiny $2 trillion mistake when rating the US economy

[mrstickball]

Krusnik said:

Killy_Vorkosigan said:
So to sum up
- Bank decided to do shit with your money, produce false report and decided to sell houses to people who could not afford it, awaiting them not to be able to reimburse the loan, and make a profit because of the rising of price the m2.
- It failed totally, so bank have no money, and scare the shit out of everybody.
- States decide to lend money to bank in order to avoid chaos, then increasing their own debts
- Bank speculates on state debts, making more money, and reimbursing the money the states give them
- Notation agencies come into play (while they haven't before), say the state can't reimburse their debts

BANKS PRIVATE DEBTS HAVE BECOME PUBLIC DEBTS

BIGGEST THEFT EVER

its not as cut and dry as u put it but thats  the gist of it. The underlying cause of the melt down was due to dishonesty of financial institution that exploited the loop holes caused by decades of constant deregulation (financial Lib.)

There were tons of instances where derivatives were placed on the market and were exposed to the same "toxic" debt by financial institutions (Fannie May/Freddie Mac?). Come to think of it was these same credit rating agencies that gave these derivatives AAA ratings.....hmm

For the record, Fannie May/Freddie Mac are a government creation. The government incentiivized the creation of toxic assets by first pushing the banks to loan to minorities/poor people that could ill-afford houses. Certainly, the ratings agencies and banks played a part, but they didn't star the mess, government did.