Tuesday, August 09, 2011

Son of S&P

S&P reactions include a very good Nate Silver piece, taking them to task for generally being very bad at what they do.

Turns out they made a $2 trillion error, which they admitted but brushed aside as unimportant.

My own belief is that this is a bit of a makeup call, after really blowing things on housing and derivative ratings.

[BTW, any winger looking for "blame" for the Great Recession need look no farther than the ratings agencies for the biggest culprits. Their fake, optimistic ratings made risky financials look quite rosy, staving off a free market correction which would have been far less painful if done earlier.]