The Standard and Poor’s credit rating agency, which helped cause the last financial meltdown, downgraded the U.S. Credit rating last week, contributing to a new financial meltdown. Standard and Poor’s was among the credit agencies that gave its high AAA ratings to collateralized debt obligations which blew up and sparked the worldwide financial crisis of 2007-2008 from which we are still struggling to recover.
As Paul Krugman says, the S & P “is the last place anyone should turn for judgments about our nation’s prospects.’
It has been pointed out they made a $2 trillion error in their calculations about the U.S. deficit reduction under the new budget plan, but in their defense, hey, there are twelve zeroes in a trillion, and who among us hasn’t been off one or two trillion dollars when we do our own budgets?
Knowing precisely when they were going to downgrade the American credit rating and what havoc it would cause, I can’t help but wonder how they invested their money of late, and if they took advantage of what they knew to short the stock market? I would hate to be accused of being too cynical