Standard & Poors Rating Agency

Open letter to Standard and Poors:

Following recent downgrades of some countries credit status there are questions that need to be answered.

I'm concerned that your company should have so much apparent influence over the  economy of a sovereign country and that country's financial standing in the world.

Who elects you to this position of power?

Who regulates you and the other credit rating agencies?

Do you believe that it is right that you should be able to wield this degree of seeming absolute power?

How does a country regain its AAA rating from your company?

 If cuts in spending are necessary, where should those be made in your view?

What does your company actually produce, in goods and/or services or other tangible products that is beneficial to the world economy?

Look forward to hearing from you.


Thanks


Bewildered of Bergearc

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Following on from these downgrades of some of the biggest economies in the world what would be the outcome if all economies were downgraded to AA Status?  The immediate net effect of any downgrade is to render government borrowing more expensive, therefore if all were downgraded then world borrowing costs would obviously increase.  Who would benefit?  Surely the only ones would be large lending institutions which some may well say are the root cause of the current financial mess.

Should the absolute AA status pertain then it logically follows that states that fall by the wayside will be further downgraded, ad infinitum, ad nauseum.  Having reached the end of the alphabet then presumably the next symbol of financial probity would be to award an appropriate number of banana symbols.