For the first time in ages, I am pleased with my Federal government, taking action against the perverts at S&P. First of all, they shouldn’t have downgraded the United Steaks. That’ll learn them. And secondly, they fueled the housing bubble with fraudulent ratings because their customers wanted AAA.
Anyone in the business of money management knows to laugh and urinate on the credit reports of the ratings agencies. It’s time to shut down these bucket shoppes and allow for some credible people to emerge.
I don’t think it’s too harsh to say S&P, Moody’s and Fitch were more than stupid during the housing bubble, but criminally fraudulent.
Just like the good folks from Arthur Andersen were put out of business post Enron, I see no reason why the same shouldn’t happen to these ratings agencies.