A year later, S&P downgrade of US looks like a dud

[Omaha Steve]

http://apnews.excite.com/article/20120805/DA0FA7M81.html

By PAUL WISEMAN

WASHINGTON (AP) - The rating agency Standard & Poor's stunned the world a year ago by stripping the U.S. government of its prized AAA bond rating.

The downgrade of long-term U.S. Treasurys threatened to sow chaos in financial markets, driving up U.S. interest rates, pushing the dollar down, scaring investors away from stocks and into that traditional refuge for the fearful: gold. In fact, the Dow Jones industrials dropped 635 points in panicked selling the first day of trading after the S&P announcement.


In this Tuesday, July 31, 2012 file photo, trader Richard Cohen, left, works on the floor of the New York Stock Exchange. The rating agency Standard & Poor’s stunned the world a year ago by stripping the U.S. government of its prized AAA bond rating. A year later, S&P’s historic move looks like a non-event. Long-term interest rates are sharply lower, the Dow Jones industrial average has reversed course and is now up more than 1,600 points. The dollar has rallied, and gold prices are down from where they were when S&P lowered the boom (AP Photo/Richard Drew, File)


A year later, S&P's historic move looks like a non-event. Long-term interest rates are sharply lower, the Dow industrials reversed course and is now up more than 1,600 points. The dollar has rallied, and gold prices are down from where they were when S&P lowered the boom.

Rival rating agencies Moody's and Fitch have said they might downgrade the U.S. government's blue-chip rating, too, though neither has followed S&P's lead.

FULL story at link.

[Nye Bevan]

1. When you have Republican morons in Congress seriously threatening to force the US to default,

if they don't get their way, I don't think the US deserves a AAA rating. It was their breathtaking irresponsibility that caused the downgrade.

[Sherman A1]

2. S&P in my opinion

should have been investigated by the Federal Government until doomsday. They should have auditors and investigators from every agency that applies parked there checking every paper clip and pencil until they finally just go away.

S&P's lack of due diligence helped in no small part to create the mortgage mess and subsequent meltdown of the economy. I believe they should be ground into the dustbin of history.

But, that is just my opinion.