S&P Beers on Marketplace
I don't know if any of you caught him on NPR/IPM's Marketplace today, but I was shocked at his "defensive" positioning. My favorite part was when asked about the "trustworthiness" of S&P, given the fact that they had Lehman Brothers at such a high rating days before their meltdown. His answer was, something like (AND I AM PARAPHRASING) "well, that wasn't MY group that did that, it was some other dysfunctional group". That's what I took from it although its hardly a direct quote.
What crap. Are you kidding me? So S&P is so F*&ck$d up that the different business units have no effect on each other, no consistency, no communication? Mr. Beers - you would have handled the Lehman Brothers fiasco differently.... is that what you are saying?
If that's the case, then why trust anything that comes from that company? Could you imagine your company having one department that's totally screwed up, but somehow your customers should trust the other departments regardless of the massive failures of another business unit?
My opinion: the leadership of S&P is attempting to regain credibility by putting out an unpopular downgrade. I can imagine another quote... "we didn't want to do it, but we felt that it was the moral thing to do". That's right, the freaking disaster of a rating agency has now taken the "moral" high ground.
Final point: It doesn't even matter. What you are seeing in the markets has nothing to do with the downgrade - its all about Italy and Spain. That's it. It's a total joke to talk about the US defaulting once the ceiling was raised. S&P is looking to make headlines and get press for --- saying what needs to be said, regardless of how unpopular it is.