Would be hard not to know by today that the S&P downgraded the US . What is less well known is why it is further evidence of the circus of greed that is the American financial and political system. First, read this post by Bill Mitchell, S&P decision is irrelevant. If you are pressed for time just scroll down to where he talks about Japan’s experience with the ratings agencies. Next go read this excellent post over at Naked Capitalism, Matt Stoller: S&P’s Predatory Policy Agenda.
Now remind yourself how poorly the ratings agencies did at rating the TBTF financial institutions in the walk up to the crisis. Now ask yourself why ratings are not being done by competent, independent, and a not for profit third party.