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FBN’s Gerri Willis on concerns over S&P’s credibility since its downgrade of the U.S. credit rating.
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Pity for Standard and Poor's the rating agency is the focus of criticism from all sides Treasury Secretary Tim Geithner called their downgrade the long term of of long term treasury debt.
Terrible and said the move showed a stunning lack of knowledge about basic US fiscal math.
The president himself -- a more appropriate rating should be quadruple -- And from the right -- describing that's outrageous.
-- frankly it's not we got a spending problem and anyone who spent more than a casual our poured through the numbers knows that.
Forty cents of every dollar spent by the federal government has to be -- Our federal debt equals the sum total better economy produces every year fourteen trillion dollars entitlement programs are on the verge of breaking down.
Because of the spending Burton.
Even sell downgrades done its humiliation.
And an embarrassment those are the Standard and -- offices right there that looks I went.
Anyway the rating agency hasn't done itself any favors by sharing much about the people who made the decision or how they work.
We've heard from the exact SNB president DeVon Sharma debt committee chairman John Chambers and David Beers -- global ratings cheap right here.
But what about the people in the trenches -- -- may -- actual decision.
Today I asked us and be for some of the details who sits on the panel how many people are there what are their backgrounds with her record of accuracy.
-- they all agree on a downgrade.
We tried to contact the analyst who covers -- but no details forthcoming not a all of which makes me think about S -- -- track record and that's where you Begin to have some sympathy for the naysayers.
Thanks SMP and competitors Moody's and Fitch many investors held on to their Enron shares until the last minute.
The rating agency only downgraded the energy company days before it went bankrupt.
Remember and -- the company that engineered a massive accounting fraud.
Same goes with WorldCcom they blew up to.
And probably most notably recipe and other ratings agencies -- sub prime mortgage debt investments a clean bill of health.
Until it was way too late.
What followed was a stock market route the longest recession since the Great Depression when we're still crawling out up.
It's no wonder some folks call S&P Moody's and Fitch -- three blind mice.
Look so we -- of the triple -- debt club it's full of tax havens anyway Bermuda Isle -- Man.
Good credits but not economies and influence the entire planet.
We have a real economy critical to the entire world and we can't return to the debt club or I'm not the -- club that is.
The -- club especially the debt downgraded cents politicians to do the right thing and cut debt.
Sometimes the right things happen for the wrong reasons this is one of those times.
