US credit rating: the story behind the headlines?

Standard  Poor’s (SP) is concerned that Democrats and Republicans will not be able to agree a plan to reduce the growing US deficit.

The agency has downgraded its outlook from stable to negative, increasing the likelihood that the rating could be cut within the next two years.

The US Treasury responded that SP had underestimated its ability to tackle the national debt.

via BBC News – US credit rating warning prompts global markets fall

Well that was the story at the start of the week but why now? Dare I suggest that the answer lies in a bit of “tit-for-tat” worthy of the school playground BUT demonstrating the indifference of Political and Financial institutions to the mayhem they have presided-over?

IF my memory serves me correctly I’m sure there was a pretty obvious “threat” of downgrading the US Government credit rating – made by the rating agencies during the congressional hearings (in late 2008) – in an attempt to blackmail them into not prosecuting.

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Bank reforms to make it look as if something is being done

Perhaps too close to the truth to be really funny!

“…the report has been given a cautious reception by the British Bankers Association in what experts have described as an insultingly transparent double bluff”

The Daily Mash – Bank reforms to make it look as if something is being done.