stacks



in corporations we trust

rating 'agencies'

"There was nothing accidental about the crisis."

Paul Krugman


"Auction-rate preferred securities is the largest fraud ever perpetuated by Wall Street on investors." - Harry Newton

"This has gone beyond Greece, at this point, the markets smell the blood, and they're picking off each weak link." - Win Thin, senior currency strategist at Brown Brothers Harriman committing of the Greek meltdown of 2010

"I think that virtually everybody associated with the financial world contributed to it. Some of it stemmed from greed, some from stupidity, some from people saying the other guy was doing it." - Warren Buffet on the meltdown

"Over the last 20 years American financial institutions have taken on more and more risk, with the blessing of regulators, with hardly a word from the rating agencies, which, incidentally, are paid by the issuers of the bonds they rate.

The American International Group, Fannie Mae, Freddie Mac, General Electric and the municipal bond guarantors Ambac Financial and MBIA all had triple-A ratings.

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. " - Michael Lewis & David Einhorn


2007 S&P, Moody's and Fitch control 98% of the US debt ratings market.

From the start of 2007 until September 2008 Moody's Investors Service downgraded more than $449 billion in marketable securities similar to Gemstone VII or 82% of all those outstanding.

Moody's also downgraded more than three-quarters of collateralized debt obligation securities it once rated AAA.

The three credit rating corporations graded Lehman Brothers debt A-1 the day it filed for bankruptcy.

State regulators depend on credit grades to monitor the safety of $450 billion of bonds held by US insurance companies.

The rating companies reaped a bonanza in fees earlier this decade as they worked with financial firms to manufacture collateralized debt obligations.

On Sept. 16, one day after the three credit rating firms downgraded American International Group double-A score by two to three grades, private contract provisions that American International Group had with banks around the world based on credit rating changes forced the insurer to hand over billions of dollars of collateral.

Credit raters are paid by the companies whose debt they analyze so the ratings reflect a bias.

Credit raters are likely to charge $400 million in fees to taxpayer's for TALF credit ratings.


"To promote competition, in the 1970s ratings agencies were allowed to switch from having investors pay for ratings to having the issuers of debt pay for them.

That led the ratings agencies to compete for business by currying favor with investment banks that would pay handsomely for the ratings they wanted. Wall Street paid as much as $1 million for some ratings, and ratings agency profits soared.

This new revenue stream swamped earnings from ordinary ratings." - Kevin G. Hall


"In 2001, Moody's had revenues of $800.7 million; in 2005, they were up to $1.73 billion; and in 2006, $2.037 billion.

The exploding profits were fees from packaging and granting the top-class AAA ratings, which were supposed to mean they were as safe as US government securities." - Lawrence McDonald


"Ratings agencies abjectly failed in serving the interests of investors.

They've benefited from the monopoly status achieved with a tremendous amount of assistance from regulators." - SEC Commissioner Kathleen Casey

Five days before filing for bankruptcy Richard Severin Fuld Jr. assures investors that Lehman Brothers has $42 billion in liquidity.

"How does $42 billion vanish in five days. Did Lehman officers know of harbingers of doom they weren't sharing?" - Roger Parloff





September 2008 Until September, the month of the Lehman Brothers bankruptcy, the Federal Reserve had held the expansion of the Monetary Base virtually flat.

US Treasury Secretary Timothy Franz Geithner, decides to let Lehman Brothers fail "to teach a lesson".

On October 7, 2008, the Federal Reserve announced that it was using its emergency authority under Section 13(3) of the Federal Reserve Act to establish a Commercial Paper Funding Facility.

By the end of October, the Federal Reserve had purchased more than $100 billion in commercial paper.





unique library index

This web site is not a commercial web site and is presented for educational purposes only.





This website defines a new perspective with which to engage reality to which its author adheres. The author feels that the falsification of reality outside personal experience has forged a populace unable to discern propaganda from reality and that this has been done purposefully by an international corporate cartel through their agents who wish to foist a corrupt version of reality on the human race. Religious intolerance occurs when any group refuses to tolerate religious practices, religious beliefs or persons due to their philosophical ideology. This web site marks the founding of a system of philosophy named The Truth of the Way of the Lumière Infinie - a rational gnostic mystery religion based on reason which requires no leap of faith, accepts no tithes, has no supreme leader, no church buildings and in which each and every individual is encouraged to develop a personal relation with the Creator and Sustainer through the pursuit of the knowledge of reality in the hope of curing the spiritual corruption that has enveloped the human spirit. The tenets of The Truth of the Way of the Lumière Infinie are spelled out in detail on this web site by the author. Violent acts against individuals due to their religious beliefs in America is considered a "hate crime."

This web site in no way condones violence. To the contrary the intent here is to reduce the violence that is already occurring due to the international corporate cartels desire to control the human race. The international corporate cartel already controls the world economic system, corporate media worldwide, the global industrial military entertainment complex and is responsible for the collapse of morals, the elevation of self-centered behavior and the destruction of global ecosystems. Civilization is based on coöperation. Coöperation does not occur at the point of a gun.

American social mores and values have declined precipitously over the last century as the corrupt international cartel has garnered more and more power. This power rests in the ability to deceive the populace in general through corporate media by pressing emotional buttons which have been preprogrammed into the population through prior corporate media psychological operations. The results have been the destruction of the family and the destruction of social structures that do not adhere to the corrupt international elites vision of a perfect world. Through distraction and coercion the direction of thought of the bulk of the population has been directed toward solutions proposed by the corrupt international elite that further consolidates their power and which further their purposes.

All views and opinions presented on this web site are the views and opinions of individual human men and women that, through their writings, showed the capacity for intelligent, reasonable, rational, insightful and unpopular thought. All factual information presented on this web site is believed to be true and accurate and is presented as originally presented in print media which may or may not have originally presented the facts truthfully. Opinion and thoughts have been adapted, edited, corrected, redacted, combined, added to, re-edited and re-corrected as nearly all opinion and thought has been throughout time but has been done so in the spirit of the original writer with the intent of making his or her thoughts and opinions clearer and relevant to the reader in the present time.


Fair Use Notice



This site may contain copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of criminal justice, human rights, political, economic, democratic, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information see: www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

Dedicated to the establishment of knowledge, truth, justice and a clear understanding of reality as the American way!
Copyright © Lawrence Turner
All Rights Reserved