Read Paul Krugman in : http://krugman.blogs.nytimes.com/2011/08/05/sp-and-the-usa/.
An excerpt :
"OK, so Standard and Poors has gone ahead with the threatened downgrade. It’s a strange situation.
On one hand, there is a case to be made that the madness of the right has made America a fundamentally unsound nation. And yes, it is the madness of the right: if not for the extremism of anti-tax Republicans, we would have no trouble reaching an agreement that would ensure long-run solvency.
On the other hand, it’s hard to think of anyone less qualified to pass judgment on America than the rating agencies. The people who rated subprime-backed securities are now declaring that they are the judges of fiscal policy? Really?"
Almost everybody agrees that the rating agencies are totally unqualified and not objective at all ; on the other end, everybody keeps listening to and acting on their advice. The world has gone mad indeed.
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