S&P downgrade of US Govt credit rating.. A question of ethics?!

Although I do worry on the downstream effects of the US downgrade itself..

A debtor that hasn't defaulted is not the same as one with no default risk.

We look at the US balances and question if paying debt with another debt is sound practice. The reality is that we have treated US debt as one big blank check and that has capitalised debt down the US food chain into GSEs, Muni etc. It it marks the divide between US and the rest of the world: the level of arrogance, patriotism and naivety of the US never cease to astound!

Also I saw no intervention re S&P ratings at the tme in a Market well reported as early as 2006. As part analysts, part auditors, part media they were victims like many of us. We cannot now disparage their conservatism after having criticised their earlier liberalism. Alas I think politics will come to bare but this remains a point of independence and S&Ps status as a credible global agency not a US puppet!

On the eve of an election year, Capital hill has played political games with the global economy