The War Against The Rating Agencies Begins: Italy Prosecutor Seizes Moody's, S&P Documents

Zero Hedge ^ | 08/04/2011 | Tyler Durden

[SeekAndFind]

And so the war against the rating agencies is now official as a floundering Europe does anything in its power to scapegoat anyone and everyone, starting with its natural sworn enemy of course, the rating agencies. According to Reuters, "Italian prosecutors have seized documents at the offices of credit rating agencies Moody's and Standard & Poor's in a probe over Suspected "anomalous" Fluctuations in Italian share prices, a prosecutor said on Thursday."

Ah yes, it is Moody's fault that Unicredit, Intesa, Fiat and pretty much all other Italian companies now close limit down at least once a day. Either way, this is sure to end well. We will bring you more as we see it.

[SeekAndFind]

Meanwhile back home...

As panic ensues in world markets, yields on US Treasuries are plunging across the curve.

Via Bloomberg, you can see the big change from yesterday to today.

The 2-year is yielding below 0.30% for the first time ever.

[Fedupwithit]

"Hey, it's not us, the politicans creating the problem, spending money like drunken sailors...it's the rating agencies fault for devaluing our countries!!...Let's get em!!!"

What a joke...how do we as humans actually put these morons in positions of power?

[Scott from the Left Coast]

All hell is breaking loose as it is now crystal clear that the U.S. is monetizing its debt. John Boehner? Are you watching or are you in your own dacha somewhere drinking wine? Your inability or unwillingness to stop the Democrats from their crazy scheme to cover their ass for the 2012 election is causing the whole damned house of cards to collapse...now. Moronic country club Republicans in the Senate and scared-to-death Republicans in the House just created Apocalypse Now.

[apillar]

Lol! I guess someone in Europe was reading my posts! Early in the default debate, when Obama was crying about the how these rating agencies were going to destroy the American economy. I said that if he, or any other president, REALLY wanted to prevent a downgrade (which he didn't, he hoped to blame the Republicans for one) all they would have to do is send a quiet message to the executives of these agencies that in the case of downgrade, the IRS, FBI, FTC etc. would be taking a VERY close look into the business AND personal finances of the rating agency employees. I'm guessing the threat of a downgrade would disapear off the table so fast it would make your head spin.

[Roccus]

Should have been done here in ‘08.

[danielmryan]

Early in the default debate, when Obama was crying about the how these rating agencies were going to destroy the American economy. I said that if he, or any other president, REALLY wanted to prevent a downgrade (which he didn't, he hoped to blame the Republicans for one) all they would have to do is send a quiet message to the executives of these agencies that in the case of downgrade, the IRS, FBI, FTC etc. would be taking a VERY close look into the business AND personal finances of the rating agency employees. I'm guessing the threat of a downgrade would disapear off the table so fast it would make your head spin.

Except for foreign rating agencies.