SHUT DOWN S&P!!!!!
The ratings agency that brought you AAA rated toxic debt now mathematically lies about it ratings on homebuilder SPF.
From S&P's most recent report on SPF:
"Assuming stable pricing in its major markets, we foresee the company's gross margin at 8.8% in 2008, compared to a negative 7% in 2007."
From tonight's Reuter's article downgrading four insurers:
[W]e believe median home prices will decline 20% from the peak in 2006. By contrast, the forecasts we used in November 2007 assumed a decline of 11%.
S&P CAN'T FORSEE GROSS MARGINS OF 8.8% IF IT BELIEVES HOME PRICES WILL DECLINE 20%
MOREOVER, BEFORE S&P issued its report on SPF a few weeks ago, homes prices had ALREADY dropped a record amount in the first two months of 2008. S&P KNEW HOME PRICES WERE NOT STABLE. SOLIDIFYING THAT KNOWLEDGE, S&P says TODAY it "believes" that home prices will drop 20%.
Which is S&P lying about, its belief that housing prices will be stable or its belief that prices are falling? THAT SEEMS LIKE AN EASY ONE.
Isn't S&P paid by the builders to rate them? Isn't S&P the ratings agency that rated toxic subprime debt AAA?
This kind of behavior is destroying ALL credibility in our financial markets. The SEC is sitting on its backside and doing NOTHING about it. Our company and property values are eroding everyday. Pretty soon, the American financial markets will be viewed no better than the most fruity of banana republic capital markets.
S&P is destroying credibility and contributing to the destruction of trillions in wealth of American investors and homeowners. You can sit there and take it up the backside or demand from your representatives that something be done about this nonsense....or pretty soon we will all be rioting in the streets for rice.