You might think Standard & Poor’s has something against the U.S. government, the way the ratings firm treated the nation's credit rating on Friday.
In fact, it does.
It's hard to view the monumental ratings downgrade in context without understanding the long-running feud between the government and ratings agencies. In April, Sen. Carl Levin, D-Mich., issued a scathing 650-page report contending that malfeasance at ratings bureaus like Standard & Poor’s was as much to blame for the housing bubble as any bank, and included a series of smoking gun e-mails that suggested that the firms knew they were profiting from unethical behavior. A little-known section of the Dodd-Frank financial reform bill also hits the rating agencies with new limits destined to undercut their lucrative business; the Securities and Exchange Commission is discussing right now just how to implement the new rules. The public comment period on new rules ended Monday.
Is the timing a coincidence? Or could the ratings downgrade from Standard & Poor’s be viewed as a shot back at a government that's been taking plenty of shots at the ratings industry lately?
To be sure, no one needs Standard & Poor’s to say the U.S. government's coffers are in sorry shape. But this feud over the lucrative and arcane business of granting credit ratings shouldn’t be ignored.
5 comments:
Gee, does the truth hurt? Aww, I'm sorry, but facts are facts. The fed is running a ponzi scheme, and going toward insolvency. DUH, the truth hurts, and has to be put on the table for all to see. Case closed!
of course it is
it is to drag us into the European Economy which is far more globally divested than we are other than warring
they want us reigned in our exploits that are very expensive to our allies and you think there is cultural unrest here
just wait these flash mobs that are springing up will soon be looting and pillaging too......like in London
and it is about time America is dew for some unrest....some fear in the hearts of the shoppers and complacent fat ass uneducated so called patriots
it is all very juicy right now
most interesting
lol Some of your commenters may be stupid but they are entertaining.
You're right, 10:03. Since I am not an expert on economics as I gather some of the commenters are, I don't think I will try to offer any opinion. I'll just enjoy the others' take on things.
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It will kick you so hard you will not be capable of resting.
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