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We Need To Band Together To Sue The Shit Out Of S&P

Both S&P and Moody’s, actually. 60 Minutes did a fascinating piece on the financial meltdown last night. You can watch it here.

I’ve had an idea in my head for about a year now. And every time I read another story about this financial meltdown, I am more convinced that I’m onto something. I think that every single person in America with a 401k or a 403b should band together to instigate a class action suit against S&P and Moody’s. I believe that unions are the logical place for these class action suits to start.

Why sue the rating agencies? Because if they hadn’t rated these sub-prime mortgage bundles as AAA, they never would have ended up as investment options in your 401k. These agencies are responsible for analyzing investments and rating their viability. They were the first step in the disaster that we’re all suffering under now. I understand that Moody’s and S&P are relatively small fish in the grand scheme of companies that are responsible for stealing your money. But I believe that the discovery process in suing them will lead to the much bigger fish. I believe that the discovery process will show that the rating agencies are paid BY INVESTMENT FIRMS to rate their investment offerings!

I honestly don’t know why Moody’s and S&P are still in business. And why aren’t they forced to put emoticon winkies next to each and every investment rating that they put out?

Americans are understandably pissed. I’m pissed. So why are we acting like we’re powerless?

Our system of “capitalism” is broken and our government isn’t going to help us because the people that are benefiting from this broken system have bought our legislators. If go down the line and sue each of the players in this game of “raid America’s retirement plans”, we can start to fix our broken capitalism system by using it against the people that are using it against us.

No, it’s time that we took matters into our own hands. It starts with going after the rating agencies. I’m convinced that doing so will lead us to Goldman Sachs (and their brethren). We do have the strength in numbers thing going for us. We just need to get organized and band together to make things happen.

If we do nothing, I can assure you that there will be more privatization of profits and socialization of losses to come. This is surely something that we can all agree on regardless of party affiliation, isn’t it?

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3 thoughts on “We Need To Band Together To Sue The Shit Out Of S&P

  1. A relatiave of mine who knows about mortgages said that when this first went down and he knows from what he speaks. He said the REAL culprits are the rating services like standard & poors because they gave triple A ratings to the very instruments that failed. There was a HUGE confict of interest. If these bastards do not do time in a federal prison they will have gotten away with near murder and in some cases people lost their fortune did end up committing suicide. This is HUGELY HUGELY serious and if you think the Republican party in the November elections will help you you are SADLY mistaken, they are merely taking advantage of huge anger everywhere!!! Get the facts, see who is REALLY on your side and who isn’t. Trust NO ONE!

  2. A relative of mine who knows about mortgages said that when this first went down and he knows from what he speaks. He said the REAL culprits are the rating services like standard & poors because they gave triple A ratings to the very instruments that failed. There was a HUGE conflict of interest. If these bastards do not do time in a federal prison they will have gotten away with near murder and in some cases people lost their fortune did end up committing suicide. This is HUGELY HUGELY serious and if you think the Republican party in the November elections will help you you are SADLY mistaken, they are merely taking advantage of huge anger everywhere!!! Get the facts, see who is REALLY on your side and who isn’t. Trust NO ONE!

    • There are different players who are responsible for different parts of this whole mess. Yes, S&P and Moody’s are directly responsible for sinking your 401k. But the real issue is the government, which allows rating agencies to be paid by the investment banks they rate for! If that isn’t a conflict of interest, I don’t know what is.

      That’s why I think that a class action suit against one of the rating agencies has the potential to expose the whole mess. First of all, everyone in America with a 401k would have standing with the court to file such a suit, or join a class. Secondly, S&P and Moody’s don’t have the resources to quash a law suit the way Goldman Sachs does. The discovery process would give us Goldman Sachs head on a platter. I’m certain of this.

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