S&P downgrades US debt to AA+

[I1L2T3]

You mean, the US Government and the SEC haven't got a clue. They're the ones who consider S&P to be among the most highly-regarded credit ratings agencies.

 

Yes I most certainly believe the US government and the SEC don't have a clue. They've taken the world's leading economy and turned it into a basket case in a little under 30 years. All through that period the ratings agencies have rubber stamped the US government policies with AAA ratings dished out like confetti.

[horribleblob]

No.I don't believe they did.

 

Apparently, the January 2011 report on the crisis by the US Government-appointed Financial Crisis Inquiry Commission included this: "The three credit rating agencies were key enablers of the financial meltdown. The mortgage-related securities at the heart of the crisis could not have been marketed and sold without their seal of approval. Investors relied on them, often blindly. In some cases, they were obligated to use them, or regulatory capital standards were hinged on them. This crisis could not have happened without the rating agencies. Their ratings helped the market soar and their downgrades through 2007 and 2008 wreaked havoc across markets and firms."

[handypandy]

I've been derided for linking to this bloke on several issues in the past on these pages, so here you go, I'm a glutton for punishment. This was his 'video blog' from April this year. Linky

[Harleyman]

I think that China's issue is twofold. Firstly they need the US to purchase the goods that they produce so they need the US population confident enough to spend their hard earned dollars. I believe this is the reason they've been cradling the US economy with their investment.

 

Secondly I think that China will use this to weaken the US militarily, making it easier for their to achieve it's ambition to become a major player on the world stage.

 

And China's rating is only AA Minus.