Thursday, 21 May 2009

S&P downgrades short-term government debt

That would be the same Standard and Poor's that was a major cause of this financial crisis in the first place by over-rating sub-prime securitised debt while being paid commissions by the issuers of that debt? Well, they certainly have nerve and audacity I'll give them that. They've down-rated UK short-term government debt to A-1+. The notion that the UK government will default is nonsense but now short-term interest rates will have to rise slowing the recovery. Come the revolution Standard and Poor's, come the revolution......

Post script: Duncan Weldon adds some perspective. But still....

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