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S&P’s Rating Is Meaningless

August 7, 2011

Standard & Poor’s downgraded the U.S. credit rating on Friday from AAA to AA+ sending shockwaves through the global economy. The U.S. has always maintained the sterling AAA rating until now, and still does with the other two credit rating agencies – Fitch and Moody’s. So the question is this: Just who the hell does Standard & Poor’s  think they are? I’ll tell you who they ARE.

They are just a company with a global network of analysts that rate the creditworthiness of public sector entities around the world, including bond insurers and sovereign nations. Most importantly, this is the same corrupt company that gave their highest AAA rating to the toxic mortgage securities that were largely responsible for causing the current Great Recession. They proved then that their ratings can be bought, and any credibility they once had flew out the window.

So why are they still in business and why is everyone giving any credence whatsoever to how they rate anything, especially the creditworthiness of the worlds largest economy? I don’t have an answer for that, but I do have a suggestion: ignore them. Yes, the U.S. economy is having some serious problems, but so are most nation’s economies. We don’t need some self-serving corporate entity using their meaningless opinion to make things worse. Deal with them like you would a pesky house fly – ignore them until you can’t any longer, then swat them and go on about your business.

One Comment leave one →
  1. Anonymous permalink
    August 9, 2011 7:34 PM

    Here, here! I completely agree.

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