Hardball: Hell hath no fury like an administration embarrassed by a top credit-rating agency stating the obvious — that its perilous spending policies and rising debts warranted a downgrade just like any poorly run business.

Speaking at a fundraiser in Philadelphia on June 13, 2008, candidate Barack Obama said of his Republican opposition: "If they bring a knife to the fight, we bring a gun."

In this case, in August 2011, Standard & Poor's brought an embarrassing downgrading of U.S. debt to AA+ from AAA in advance of the president's re-election bid, the first such reduction in U.S. history.

In response, the administration brought a lawsuit in 2013 charging fraud and seeking $5 billion in fines from S&P for the credit ratings it had attached to bonds supported by subprime mortgages in the years leading up to the financial meltdown.

At the time, it smacked of vendetta. As we noted last year, S&P's subprime securities ratings were virtually identical to those of Moody's and Fitch, yet the government singled out S&P for prosecution simply because it was the only one of the big three to pull the trigger on the downgrade.

The vindictive nature of the government's lawsuit was confirmed Tuesday when lawyers for McGraw-Hill, S&P's parent, filed an affidavit from the company's chairman, Harold McGraw III, stating that on Aug. 8, 2011, mere days after the downgrade, he got a call from Timothy Geithner saying S&P's deed would not go unpunished.



Read More At Investor's Business Daily: http://news.investors.com/ibd-editorials/012314-687419-tim-geithner-threatened-standard-and-poors.htm#ixzz2rGq5CgxY
Follow us: @IBDinvestors on Twitter | InvestorsBusinessDaily on Facebook

Votes: 0
E-mail me when people leave their comments –

You need to be a member of The Constitutional Conservatives to add comments!

Join The Constitutional Conservatives

  

Note to contributors:
It appears text is not spacing properly please "double space" your paragraphs- I apologize for this inconvenience 12/22/20

Please upload your posts in 12 px font size and don't forget your tags.  Tags in an article are INCREDIBLY important!    They're the internets way of locating your post in a search.

 

Without tags - your article is INVISIBLE on the web!

 

Use keywords found within your post and/or use phrases which a person would enter *IF* they were searching your topic.

 

  • Minimum 400 characters (that's only a few sentences guys). 
  • No more than 20% of an Editorial entry may be copy/pasted from another site although back links to research are encouraged. 
  • All Editorial entries will require Editor approval. 
  • Once published, increase your presence and readership by posting your entry directly to Twitter, Facebook, Google+.
TONY SALAZAR posted a discussion
Donald Trump For Speaker Of The HouseDerek Hunter|Posted: Jan 25, 2022 12:01 AM     Source: AP…
5 hours ago
Jerome published a
The Way I See It:Trump withheld the funds from Ukraine because he knew the Ukraine Government was…
yesterday
TONY SALAZAR posted a discussion
TUCKER CARLSON: Joe Biden shuffled forth from seclusion this afternoon for a rare solo press…
Thursday
Jerome published a
The Way I See It:The question should be Why is Ilhan Omar and Rashida Talib allowed in the United…
Jan 18
Daniel John Sobieski published a
      WEAPONIZED BANKS ATTEMPT TO SMOTHER MY PILLOW AND DEFUND MIKE LINDELL…
Jan 17
Donna Brugh is now a member of The Constitutional Conservatives
Jan 14
Shannon Burns is now a member of The Constitutional Conservatives
Jan 10
Mary Ellen Reulein is now a member of The Constitutional Conservatives
Jan 9
Jerome published a
The Way I See It:Justice Sotomayor does not hold a seat on SCOTUS because of her oh so brilliant…
Jan 8
Daniel John Sobieski published a
                                MAKE JAN. 6 ASHLI BABBITT REMEMBRANCE DAY…
Jan 7
Daniel John Sobieski published a
                 DIRTY HARRY REID AND JOHN BRENNAN THE ORIGIN OF COLLUSION HOAX                    …
Jan 1
Susan Nielsen posted a discussion
 

Hello Members, Friends, and fellow Patriots,
“Every year we have the opportunity to write a new…
Dec 31, 2021
Gene is now a member of The Constitutional Conservatives
Dec 29, 2021
Jerome published a
The Way I See It:The nice thing about Christianity is that we are quite privileged, privileged in…
Dec 28, 2021
Jerome published a
The Way I See It:Long before there were 30 million automobiles and trucks on California's highways…
Dec 27, 2021
Jerome published a
The Way I See It:The nice thing about Christianity is that we are quite privileged, privileged in…
Dec 27, 2021
More…