When it comes to economic theory, it seems to me that the socialists are about as evangelical about their methods for controlling capital, labor, and production flows as the Christians are on morality issues. For instance, if you've ever tried to argue economic theory with a socialist, or a far left-leaning thinker, you would immediately see what I mean, and some of the challenges in hypocrisy involved in the logic of their reasoning.
Now then, I don't know what you know about regulatory agencies in the United States, but I happen to know a lot from experience being in business. The federal government doesn't like to be made to look like fools. And most of the folks who are in regulatory agencies are left-leaning thinking bureaucrats, along with the Democratic politicians who more recently have been dictating what these regulatory agencies should be doing in the marketplace.
In watching this situation unfold with Standard & Poor's downgrading the credit rating of the United States government, I would imagine that there will be regulatory agencies which will review that credit rating agency's criteria, and other dealings on Wall Street. We already know that the federal government's Justice Department has been investigating the credit rating agencies as to their role in the global crash caused by the US real estate market.
Yes, it is true that the credit rating agencies could be considered an enabler from a philosophical standpoint, and therefore they are not without critique, as they were a major player during that time. Although it's been almost 3 years now, the SEC and other regulatory agencies till haven't got to the bottom of why everything collapsed in 2008, and some very powerful players were able to dodge the bullet, and deflect blame.
Many would say this merely reflects the unhealthy and incestuous relationship between Wall Street and the federal government. The reason I can make that statement is I am one of them who might challenge those relationships, along with Adam Smith who obviously forewarned us centuries the prior. There seems to be quite a bit of talk and even intimidation towards S & P by the US treasury, and the Obama Administration for their downgrade.
If I were running S & P, I would gather my lawyers and be prepared for a regulatory investigation and attack due to the decision to go for the downgrade. I am quite certain that other credit rating agencies are also considering a downgrade, but don't dare, because they don't want to jeopardize their future earnings, or status in the industry. No credit rating agency would wish to take the flak from the federal government, the regulators, or the onslaught of lawsuits.
Now that let me repeat the question; "will the US government seek revenge on the credit rating agencies which downgrade them?" My answer to this rhetorical question is yes, and I would like to point to historical regulatory advancement on various industries as the reason for my answer. Time will tell. Indeed I hope you will please consider all this and think on it.
Now then, I don't know what you know about regulatory agencies in the United States, but I happen to know a lot from experience being in business. The federal government doesn't like to be made to look like fools. And most of the folks who are in regulatory agencies are left-leaning thinking bureaucrats, along with the Democratic politicians who more recently have been dictating what these regulatory agencies should be doing in the marketplace.
In watching this situation unfold with Standard & Poor's downgrading the credit rating of the United States government, I would imagine that there will be regulatory agencies which will review that credit rating agency's criteria, and other dealings on Wall Street. We already know that the federal government's Justice Department has been investigating the credit rating agencies as to their role in the global crash caused by the US real estate market.
Yes, it is true that the credit rating agencies could be considered an enabler from a philosophical standpoint, and therefore they are not without critique, as they were a major player during that time. Although it's been almost 3 years now, the SEC and other regulatory agencies till haven't got to the bottom of why everything collapsed in 2008, and some very powerful players were able to dodge the bullet, and deflect blame.
Many would say this merely reflects the unhealthy and incestuous relationship between Wall Street and the federal government. The reason I can make that statement is I am one of them who might challenge those relationships, along with Adam Smith who obviously forewarned us centuries the prior. There seems to be quite a bit of talk and even intimidation towards S & P by the US treasury, and the Obama Administration for their downgrade.
If I were running S & P, I would gather my lawyers and be prepared for a regulatory investigation and attack due to the decision to go for the downgrade. I am quite certain that other credit rating agencies are also considering a downgrade, but don't dare, because they don't want to jeopardize their future earnings, or status in the industry. No credit rating agency would wish to take the flak from the federal government, the regulators, or the onslaught of lawsuits.
Now that let me repeat the question; "will the US government seek revenge on the credit rating agencies which downgrade them?" My answer to this rhetorical question is yes, and I would like to point to historical regulatory advancement on various industries as the reason for my answer. Time will tell. Indeed I hope you will please consider all this and think on it.
Lance Winslow is a retired Founder of a Nationwide Franchise Chain, and now runs the Online Think Tank. Lance Winslow believes writing 24,444 articles by September 4th at 4:44 PM will be difficult because all the letters on his keyboard are now worn off now..
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