Random thoughts upon returning from vacation;
S & P is running radio ads touting what consummate professionals they are and how they " have taken to heart the lessons learned in the financial crisis" . What they have neglected to do is take responsibility for their actions in creating the aforementioned "financial crisis". S&P is acting like the financial crisis was some random event rather than a completely preventable occurrence if firms like Moody's and S&P had done their job.
Why does everyone admire JP Morgan as the "good" bank? In the last year they have admitted their risk controls are non existent (London Whale), paid large fines for manipulating both the natural gas and aluminium markets and been knee deep is the bogus financing that wrecked Jefferson County Alabama. If they are the good guys, what do the bad guys look like?
Fabrice Tourre of Goldman Sachs has been convicted of securities fraud in a highly publicized case recently. Maybe all the young hopefuls who swallow the Goldman Sachs kool-aid will pause when confronted with an ethical dilemma and at least think about it before trying to prove how clever they are. Secondly, does anyone think that Fabrice's boss had nothing to do with the fraud?
Nothing has changed in Europe in re countries like Greece, Portugal, Spain, Italy, Ireland etc. The only hopeful sign is that now the European Central Bank (ECB) realizes they must try to stimulate the economy. The bank tried to solve the liquidity and fiscal crisis by contracting economic activity through "austerity." I am not sure what economic theory they were using.