The Economist (August 13)
2011/ 08/ 14 by jd in Global News
The Economist believes “Substandard & Poor” provides a useful wake up call for the U.S. S&P’s past is “flawed,” especially by the liberally dispensed ratings that led to the sub-prime crisis. Still, “the basic fact is that credit ratings are useful for investors: if the likes of S&P did not exist, the market would invent them.” Previously unthinkable, the threat of default should not be a bargaining chip. “This is not how an AAA-rated country behaves. S&P did America a favour by pointing this out.”
