How many times is this stupid rumor going to come out today? CNBC refreshed it after the close, SPY's dropped a buck (recovered some). http://www.cnbc.com/id/44039103
>>On Tuesday, both Fitch and Moody's backed their triple-A rating on the U.S.âbut with caveats. << so who cares if the 3rd agency downgrades? what are the chances they did not agree behind the curtains to keep AAA BEFORE the debt ceiling deal was approved? i can't see how the congress, etc. could have signed such a deal that S&P would not like it.
The Standard & Poor's rating agency served the Obama administration with notice Friday afternoon that it planned to downgrade the U.S. government's AAA credit rating, an administration official told CNN. But S&P has yet to make its ruling public, and the source told CNN the agency is reconsidering after the administration challenged S&P's analysis of the government's finances. The source, a senior official involved in the discussions, said the agency was off by "trillions" in its economic model and was now working to revise its analysis. S&P did not return repeated calls for comment. The official described the talks as a "moving target" and said "it's clear some people there still want to go forward" and downgrade U.S. debt. Rumors swirled for most of the day Friday that S&P was preparing to make its move. But even several hours after the market close, official notice had yet to materialize Rating agencies - S&P, Moody's and Fitch - analyze risk and give debt a "grade" that reflects the borrower's ability to pay the underlying loans. The safest bets are stamped AAA. That's where U.S. debt has stood for years. Moody's first assigned the United States a AAA rating in 1917.
That will eliminate its negative effect if they ever downgrade. No one will buy their calculations anymore.
After the Housing Bubble disaster, why would anyone ever give these ratings agencies any credibility?!?!?!
I know right! They rated some MBS's AAA when in reality they only calculated that the market could go up forever. Their "calculations" and ratings aren't worth the powder to blow em to hell.