2011-08-18

Closing the barn door

US Inquiry Eyes S&P Ratings of Mortgages

The Justice Department is investigating ratings on mortgages. The article mentions that Fitch and Moody's are not mentioned, but may also be part of the investigation. It would be strange for them not to be included, since they behaved exactly the same, but if not, Warren Buffett's support for Obama is paying off again.

In any event, the government is at least four years late. When social mood was more positive, they had no interest in shaking up the market. Now that housing has cratered and most of the extreme excess has left the market, the government is putting a case together.

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