If you’re wondering why it took so long for a rating agency to downgrade America’s credit rating, this is probably why. S&P’s gift for their downgrade last week is a target on their back in the form of a Senate-backed investigation.
Into what? Into S&P daring to downgrade the credit of a nation so unserious about its budget problems that it expects the citizens to applaud a debt deal that allows $2.4 trillion to added to the national debt.
Following S&P’s Friday night decision to reduce the nation’s credit standing from AAA to AA+, the panel has begun gathering information about the downgrade, according to a committee aide. Reuters first reported the committee’s interest in the downgrade.
The unprecedented downgrade of the nation’s debt roiled financial markets Monday, and S&P was subject to fierce criticism from Senate Banking Committee Chairman Tim Johnson (D-S.D.).
“As the financial markets stumble, investors continue to regard Treasury debt as a safe haven in times of economic uncertainty. This irresponsible move by S&P may, however, have spillover effects that tax the American people by increasing interest rates on home loans, credit cards, and car loans, and by increasing the cost of finance for some state and local governments,” he said in a Monday statement. “I am deeply disappointed in S&P’s decision to enter into the game of political punditry.”
The only question is, what if Democrats are right and the US didn’t really deserve the downgrade? There’s a case to be made for S&P’s downgrade being based on some sketchy justifications – Nate Silver has been critical of the rating agency’s handling of other sovereign date ratings – but by and large does anyone honest believe that the US didn’t deserve this?
Anyone outside of the myopic spendthrifts on the political left?