Meet 3 Ratings Agencies That Have Already Downgraded the U.S.

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If Obama's deficit spending continues China will own the US. We can't continue to borrow 36 cents
of every dollar spent without dire consequences. Spending must be cut, some taxes raised and
the federal government broght under control. If the rating agencies had any "balls" we would
again be downgraded. We are on the same path as Greece.

Kenneth miller of GA 10:36AM February 14, 2012

It might seem unbelievable that S&P and Moody's, agencies that gave AIG, WorldCom, Enron and other companies AAA ratings nearly until the end should still be around. Such a catastrophic failure to deliver on a value proposition would have brought down any other company in a free market.
Of course, the ratings agencies do not operate in a free market. As the article hints, the government recognizes only a handful of agencies for reporting purposes. Prior to the scandals, Egan-Jones et al. were not NRSROs. S&P and Moody's had run their duopoly for decades.
Had the government not granted this cartel, S&P and Moody's - along with their company bought ratings model - would have failed/morphed to compete several years ago and we would have had a more realistic picture of risk for both sovereign and corporate debt.
We can still remove, that is, deregulate, NRSRO requirements and let the ratings agencies evolve to provide their service more effectively and efficiently. Ron Paul understands this and hopefully more and more people will too come 2012.

Jordan Viray of WA 2:03AM August 02, 2011