The US had a prime chance to knock down the S&P along with the rest of the voodoo ratings agencies but no, they chose to let them get away along with everyone else on Wall Street. The ratings agencies have taken some steps to clean themselves up but much like the so-called Wall Street reform, it was too little. Despite all of this, countries around the world continue to get battered by these ratings. How much longer will countries tolerate this phony industry? (Answer: As long as they keep getting money from them.)
The Guardian:
Standard & Poor's blamed "deepening political, financial and monetary problems within the eurozone" on Monday night as it warned 15 of the 17 countries in the single currency that they faced a possible downgrade of their credit ratings in a move that will once again put the actions of ratings agencies under intense scrutiny.
The agency, which stunned financial markets by stripping the US of its top-notch rating in August, cited growing "systemic stresses" in the eurozone area and listed five interrelated factors: tightening credit conditions; higher risks associated with the debts of eurozone countries; continuing disagreements among European policymakers; the high levels of indebtedness in the eurozone area; and the risk of recession across the entire eurozone in 2012.
The move prompted concerns about the impact on the eurozone's planned bailout fund, the European Financial Stability Facility, which relies on the AAA ratings of six of the 17 eurozone countries.
