The first time I read the headline in this linked story, I actually laughed. Eric Holder and the Justice Department are going after Standard and Poor, looking into possible misconduct related to mortgage securities. Raise your hand if you think this is in retaliation for S&P down-grading the US for AAA to AA+.
It is laughable that this administration would go after a group that rated mortgage securities, when Obama, as a Senator, backed continuing down the path of destruction when then-President Bush wanted to reign in Fannie and Freddie. It was democrats, led by Clinton, while he was president, and continually backed by Barney Frank, who should be the ones under investigation. This group of liberal politicians wanted everyone to be able to purchase a house. These risky mortgages were backed by Fannie and Freddie under the direction of Frank’s boyfriend. When banks and mortgage companies wanted to bring back and little sanity to the lending process, they were threatened by progressives and liberals with charges of racism.
Banks and lending institutions are not without blame. They had a choice. They could have pushed back against the progressive groups. They could have used statistics to back their claims. For example, blacks, as a whole, make less money than whites do. Whether this is right or not is not the point (it isn’t right, but it is fact). When you make loans to people who have less money, then you are going to see an increase in defaults. Of course, banks were also in this to make money, hoping against hope that it wouldn’t all come crashing down on them. And it didn’t hurt that the mortgage securities were backed by the federal government. It looked like a win-win. If the borrowers were able to make their payments, great! If they weren’t, then the fed was going to back the loan and they would get their original money back. What’s not to like about that?
What is even more funny is now the groups that support minority causes are now suing the banks for "forcing” minorities into risky loans.
Is it any surprise that this crooked administration would be vindictive enough to go after Standard and Poor’s after S&P down-graded the US credit rating based on our overwhelming debt, mostly brought on by the spending tactics of Obama and his crew. Maybe the Obama administration and the Holder-ran Justice Department should be investigating issues like Gun-Runner and Fast and Furious and the Black Panther voter site intimidation in Philadelphia. This is nothing more than intimidation, plain and simple. They are trying to make an example out of S&P as a warning to other agencies like Moody’s and Fitch.
The current crop of lawyers and the Justice Department kind of reminds me of those lawyers you see on late night television. “Did you lose your money investing? Let us sue them so the company can lose even more money”