WASHINGTON (FMLiveWire) - The outright fraud and criminality of the debt rating companies Moody's, Standard & Poor's, and Fitch "is good for America" said Ben Bernanke, chief of the US Federal Reserve, in an exclusive interview with FMLiveWire.
"Without the services of those three crooked outfits, we would never have been able to unload our mountain of trashy and worthless debt on idiot investors here and throughout the world," Bernanke stated candidly.
Ohio Attorney General Marc Dann is investigating the three credit-rating agencies for mortgage fraud and their fraudulent ratings of crap debt as investment grade AAA for high-risk mortgage lenders and other rip-off artists.
The rating companies profited hugely when an investment bank created a subprime loan pool with securities rated at triple A. The rating agencies thereby abetted the fraud against investors like Ohio and other state pension sponsors who would otherwise avoid such risky low-rated debt. Instead, they ate it up.
In addition to Ohio's interest, dozens of class action lawsuits seeking billions of dollars in damages have been filed against the rating agencies and mortgage lenders.
"Pension plans, hedge funds and other investors throughout the USA and the planet have been stuck with worthless debt and stand to lose hundreds of billions of dollars thanks to the fraud of those rating agencies," chortled Bernanke. "God Bless them!"
"This is the way the system is supposed to work All structured US securities which are actually trash, including US Treasuries, have been sold to unsuspecting stooges everywhere, and they will eventually all have to carry the can," he added.
--Copyright Felix Minderbinder Live Wire