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View Diary: Market Humiliates S&P — Rejects Downgrade (266 comments)

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  •  It does remain black-letter law... (11+ / 0-)

    and I don't think there's a court in the nation that would have overturned his decision to implement it and send the United States Government into default.

    As for the ratings agencies, as so many said, this seems more to be about politics than anything else.  Hell, even S&P kind of admitted this when pointing out the political dysfunction over raising the debt ceiling was one of the driving causes of this.

    The only problem with the government rating securities, particularly here, is that you would then have the government rating its own debt.

    Please read our community letter and support our efforts to clean up this site.

    by Mets102 on Mon Aug 08, 2011 at 08:18:34 AM PDT

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    •  You could insulate it, though. (12+ / 0-)

      The CBO is non-partisan, and so are agencies like the European Central Bank, the former Bundesbank or the Bank of England.

      All of which have sterling track records, which notably do not include giving top ratings to the likes of Enron or Lehman Brothers.

      Fuck me, it's a leprechaun.

      by MBNYC on Mon Aug 08, 2011 at 08:22:45 AM PDT

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      •  Eh, ratings are stupid. (0+ / 0-)

        Investors have to read every damned detail anyway.  After the first hints of the MBS stuff came out I started reading the money market fund prospectuses.  One I was in was in a trust which defaulted, as a matter of fact, because I didn't find an alternative fast enough.  They managed to not break the buck by having the backer waive their management fee (which I think is only responsible on the part of the backer, whose fault the selection was).

        Read pp. 1-7 of Krugman's _The Great Unraveling_ (available from Google Books). NOW.

        by neroden on Mon Aug 08, 2011 at 07:45:39 PM PDT

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    •  Really (7+ / 0-)

      all teh S&P has done here is give an opinion - you can't stop them from doing that.

      People are free to ignore them - which they are doing.

      The bitter truth of deep inequality has been disguised by an era of cheap imported goods and the anyone-can-make-it celebrity myth - Polly Toynbee

      by fladem on Mon Aug 08, 2011 at 08:30:07 AM PDT

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      •  The problem is the weight *given* to that opinion (2+ / 0-)
        Recommended by:
        highacidity, neroden

        We don't want our country back, we want our country FORWARD. --Eclectablog

        by Samer on Mon Aug 08, 2011 at 10:18:01 AM PDT

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        •  The problem is trickle down (1+ / 0-)
          Recommended by:
          neroden

          Obama's surrender to the Tea Party has destroyed the country's reputation.

          That means everything "American" is worth less, from ideals to blue jeans.

          Obama may have passed Bush in ruining the country's image around the globe. Obama's supporters have earned their share of the credit.

          Worst president ever. (from recovering Obama worshiper)

          Step aside Obama --Hillary 2012

          by Freedom Of Thinking on Mon Aug 08, 2011 at 12:32:20 PM PDT

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