Why has it taken four years for the Obama administration to bring this case?
From The Project to Restore America:
What has been distinct about Barack Obama’s presidency is his inclination to operate in continuous campaign mode, to deflect attention away from his policy failures and to undermine opposition by politicizing the issues and policy responses he chooses to take up. So now with the president’s attorney general Eric Holder having just announced the filing of a $5 billion Department of Justice suit against Standard & Poor’s – charging that fraudulent ratings were made on risky mortgage bonds that went into default during the financial crisis of 2008 – one has to wonder what the political motivation might be.
First, why now? Why has it taken four years for the Obama administration to bring this case? Second, why is it that S&P is singled out for alleged wrongdoing, when Moody’s and Fitch did the very same things in assigning top ratings to similar classes of dodgy mortgage securities? The plausible answer is that it’s all about political calculation on manipulating perception and outcome on the central issue of our time.
President Obama has been reminded from multiple quarters that the deficit spending and debt accumulation during his administration has the potential to undermine his legacy and precipitate a major financial crisis. Surely someone in the White House has paid attention to the various reports on the state of the U.S. government debt rating, issued from all three credit rating agencies during the last few years…