rating agencies are a disgrace us may stay aaa

  1. 5,331 Posts.

    can't believe what i'm reading about the possible S&P downgrade of US Governement Debt, apparently the US Government was informed at 3:30am AEST that S&P was starting proceedings to downgrade the US AAA credit rating, then a couple of hours news leaked that S&P after discussions with the US Government realised their figures were out by TRILLIONS of dollars, and are now considering keeping the US rating at AAA.

    is it just me or does this smell extremely fishy, since when do ratings agencies debate ratings with Sovereign States it is supposed to be a transparent/independent process.

    I had a feeling that something like this would happen and as usual what should have been a clear transparent process has descended into another rating agency farce.

    one can only imagine what threats/warnings the US Government issued to S&P if they continued to go down the path of a downgrade.

    add this to the ECB coming out and saying they have amazingly found the extra cash to support the Italian Bond Market it is little wonder why investors are sick of it and selling up their holdings never to return.
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