Film creator Michael Moore has to be one of the scumiest humans on the planet. The guy is a walking oxymoron. A multi-millionaire capitalist who makes a living decrying capitalism. That alone makes him a hypocrite. However, his Twitter post above shows his ignorance, stupidity, and anarchist motivation all in one.
So, let's dissect this post. He is unhappy that S&P wasn't proactive enough in 2008 to downgrade AAA securities to their true credit measure, and that lack of professional integrity led the economy into ruin. As he sees it, innocent investors were buying AAA rated paper without understanding the risk. They only downgraded the securities after their demise was a foregone conclusion.
HOWEVER, now, he is unhappy that S&P can't be bullied into maintaining a AAA rating on securities that do not deserve such a credit measure, and instead acted proactively to get ahead of the issue before it was a foregone conclusion. Otherwise, innocent investors would be buying U.S. Treasury securities on the understanding that they were completely risk-free, when in fact, the economics suggested they were not.
Hmm, which is it?
Yet, that is the least despicable part of the Tweet. Disregarding his illogical conclusions, his solution is even more preposterous and socially appalling. His solution is to ARREST the CEO of a public and independent entity for allowing his firm to do their job. S&P's free market (not government sponsored) service is to provide their OPINION on the safety and surety of debt instruments for the benefit of investors. EVEN IF a downgrade of the U.S. Treasury securities isn't warranted, is that how we handle disagreement here, by sending CEOs to jail for allowing their company to express it's opinion which also happens to be their responsibility?
This isn't Russia [Danny]. Is this Russia? This isn't Russia.
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