Here is the great irony: S&P (and the rest of the ratings agencies) helped contribute in no small way to the overall economic crisis. The toadies rated junk securitized mortgage backed paper AAA because they were paid to do so by banks.
They are utterly corrupt, and should have received the corporate death penalty (ala Arthur Anderson).
The good news is we have removed the requirements from SEC and other regulations that their input is ever needed; The bad news is they still have some sway.
It just goes to show you that the old cliche is true: You don’t need analysts in a bull market, and you don’t want them in a bear market.
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I am off to do Bloomberg TV in 10 minutes
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See also:
• S&P downgrades US debt to AA+ (FT.com)
• Math Error Fuels Fight Over Rating (WSJ)
• S&P Reconsiders U.S. Downgrade, Unidentified Official Tells CNN (Bloomberg)
• S&P said to back away from U.S. downgrade (Marketwatch)
• S&P downgrades U.S. credit rating for first time (Washington Post)
• The S&P Downgrade may be a Blessing in Disguise (Forbes)
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