Yes, they “eventually” started doing their Job, after playing their part in wrecking the world’s economy. Where was their “Data” when they gave triple A ratings to Billions of Dollars of subprime mortgages wrapped other good loans in the US. Of course this was insured by AIG in the form CDS’ that brought the biggest insurer on the planet to its knees, 85 billion to bail out Bear sterns ,200 Billion to bail out Fannie Mae /Freddie Mac , all because of subprime. Yes the banks were reckless but I wonder what their rating had been??? mmm. I suppose you heard there excuse in the congressional hearings, well of course you didn’t, anyway, it was that “we only give advice/guidance, it’s really up the institution what they do with it.
This is a country where there is now nearly a million people living in tents. And the behaviour off the Rating agencies, Financial was morally repugnant. Then we have monkey talk from the likes of you !

No McManus, you are displaying +your+ ignorance.

In contrast to member countries of the Eurozone, the US remains the sovereign issuer of its own (free floating) currency and because of this fact can never go bankrupt or default on debt denominated in US$.

When S&P downgraded US gov debt, thru’ some combination of political ideology & stupidity, the market interest rate did precisely nothing – +nada+. Indeed, given the even low rate of inflation the US gov can sell every $ of its debt, still, at an even lower rate of interest. Yes, buyers of US gov debt are actually +paying+ to hold it when inflation is taken into account.

Whilst the variously fraudulent, corrupt & ideologically motivated behaviour of the ratings agencies is a key (& unaddressed) part of the cause of the financial meltdown, it is only the tip of the iceberg.

Besides the control fraud (cf former US regulator William K Black) of the financial institutions, both in the US and Europe, we should also be demanding examination of the endemically flawed macro economics thinking that still ignores the effect of debt – indeed the function of banking itself – in its modelling of national economies. Ever wondered why the mainstream of economics had no clue the crisis was coming mere weeks before the crash? Or why the Eurozone is getting worse not better 5 years later?

Irish economists & commentators (with the exception of Dublin based writer Philip Pilkington) continue to be absolutely lamentable on these vital issues. Of course, with secure 6 figure salaries & guaranteed fat pensions, +they+ are not suffering are they?

If you want to find the facts of the intellectual bankruptcy endemic in mainstream macro economics (macro, because national economics is profoundly not like your household or business, despite all the BS from media etc. implying it is) you need to look outside Ireland. Readily available practical solutions are also discussed. (Yes, there are solutions that do not involve massive unemployment for decades & beyond.)

See Prof Bill Mitchell here:

http://bilbo.economicoutlook.net/blog/

Good articles here:

http://www.nakedcapitalism.com/

And Prof Steve Keen here;

http://www.debtdeflation.com/blogs/

It takes a little time and study to discover the truth in macro economics. But surely we owe it to our children to find out, if not for ourselves. We will not be gifted the solutions that are readily available. The present system is a lie from start to finish, that serves to enrich the top few percent, at the expense of the rest of us, thru’ the creation of both booms & busts.

A good article by Hugh O’Connell here, but there is so much more needs fundamental examination & reform including the Euro structure itself.

S&P are number crunchers that’s all, they do what they do for their clients. Governments oversee financial regulation and dictate financial policy, so stop shooting the messenger! It’s beginning to sound like late Weimar Germany around here with the level of wingnut economic theory being flung about. Corruption and cronyism in politics, get-rich-quick economic policy, war mongering abroad, all must be paid for at the end and the chickens have come home to roost for America.