S&P is downgraded too.

      As I mentioned a few days ago, the Standard and Poor's credit ratings war has begun. SP is a division of McGraw-Hill (NYSE:MHP) that publishes financial research and analysis on stocks and bonds. You may recall it was SP that gave collateralized debt obligations AAA ratings. These CDOs were later known to contains billions of dollars of overvalued assets in housing mortgages. 

It is hard to assign much creditability to any rating they give, but unfortunately many institutional investors representing, unions and state pension fund managers are legally compelled to comply with their ratings. It is a financial catch 22. In fact, little is known about the exact method by which SP assign ratings. 

In other countries, if an established institution were to confront the administration with a similar downgrade, it is likely the institution would be immediately chastised in one form or another. This administration is more subtle, but the result will be the same. SP is finished. Further, I read the July 27, 2011 Financial Services Committee, prepared testimony of Deven Sharma, recently resigned president of SP. I recommend you read it too. SP downgraded America's long term rating on August 5, 2011.  Sharma resigned last week.
       Mr. Sharma's testimony did not address the issue of how you can be paid by your customers, rate them at the same time and still be objective. Watch out for a new batch of regulations on rating agencies. Under the circumstances, SP's credibility has been downgraded too. Our financial system is precariously balanced on a razors edge that is cutting both ways.  We need a POTUS who truly understands these important issues.