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And part we are just minutes away now from attorney general Eric Holder -- -- -- -- conference on that lawsuit.
Against S&P for its pre crisis mortgage ratings.
-- we made -- sarcastic comment in the open of the show about how to just getting around to it down some say.
That's about time they did but mark -- there has some questions about all this senior economist at Wells Fargo with us from Charlotte what do you make going after recipe mark.
Well yeah it it's certainly that there are there questions about what went on what ratings are part of the financial crisis.
-- -- that the critical question is where they out of line with with what anyone else Hussein was there any intensive to defraud anybody having.
And I and all that remains to be seen but.
Something doesn't smell right that you address in -- you do after the other rating agencies well.
In essence he's the one the downgraded the US I -- it it it it it doesn't.
If deficits well perfectly good.
They also apparently didn't wanna settle -- in -- imports and didn't wanna admit wrongdoing a settlement so now you have the lawsuit as a result of that now.
On your point of whether how they would compared other people.
There are a lot of people were wrong about the financial crisis -- -- some of them should have been maybe some of them were wrong on purpose maybe they weren't.
It was just -- mistake but in the case of S&P you look at the complaint.
They may have -- -- emails that email is always the thing that seems like it'll bring everybody down at some point.
Internal emails if you look at the complaint back in 2006.
Where -- S&P in -- and ratings agencies continue to credit even.
Bigger monster the CDO market talk about collateralized debt obligations let's hope we're all wealthy and retired by the time this house.
House of cards falters -- That implies that somebody did note was a mess and they still said it was all right.
Havoc you've got you've got to take into account how many thousands of employees -- at any organization.
And and how many people were voicing concerns one way or another act -- a net it's it's very hard when you when you tell you about that and when -- looking at the legal framework.
I and we haven't seen the the complaint -- runway.
What it would actually stipulates but.
But but but in terms of prognosticate in the future and and and in predicting the financial crisis.
A lot of people are wrong united market as it did to be to everyone but under the pressure and I don't remember what your -- heavily on all the time however we get personal track record was a lot of people economists are that bad -- wrong all the time stock analysts are wrong.
All the time make projections on our show and others that don't turn out to be right but if you're doing it on purpose if you're misrepresenting on purpose that could be a crime in the question here.
You have free speech which is protected by the First Amendment -- the right to be wrong you could say something you don't have to be right about it but if you're misrepresenting.
What you're saying you know about it.
Know what you take these.
-- -- just -- bundles of bonds and you know that the bottom.
-- that's just junk just a piece of junk and you sound its triple a that's a crime doesn't.
Well it -- I don't know exactly and what what that statement would involve a -- who was saying that.
-- who was was saying what about what.
It in terms of the predictions on the financial crisis a lot of the folks who turned out to be right.
In terms of of what happened had been negative from the very onset of -- -- -- really even even before the financial even before all the light of the previous recession.
-- -- ended its so that they were eventually they're going to be right if you if you keep predicting doom sooner or later the economy's gonna -- recession.
And you're going to be right the broken -- kind of problem that -- The problem really comes in into into timing into into into what could potentially go wrong and -- how -- that could happen.
And how pervasive the weakness was going to be a certainly you you look at it it what the Federal Reserve recycle with the treasuries -- saying right at at the time.
Prior to the financial crisis.
And you know act into the question is indeed -- -- they -- they mislead people that they that is forecast that was -- That was contrary to what the prevailing opinion was during that time.
And -- mimic those of the questions that that need to be answered.
Forecasting is is that is is hazardous business particularly when it involves predictions about the future a Mark Twain said that -- however long ago Mark Twain was was trolling the shores of the Mississippi so I mean you know it's.
I don't know that.
I don't know that.
And that that you couldn't make that a crime we rate every deal it could be structured by cows and we -- was another quote from us into place and we'll see what are called -- -- -- a few minutes we've got to go now mark but thanks for.
Economic -- -- -- -- mark that there from Wells Fargo.
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