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December 5, 2011

S&P could downgrade Euro countries’ credit ratings, because they’re no fun

  • 15 number of European countries S&P put on ”creditwatch negative,” meaning that there’s a 50/50 chance of an upcoming downgrade; all use the Euro as currency
  • two number of countries that didn’t get the Euro which didn’t receive the downgrade — Cyprus (which already is “creditwatch negative”) and Greece (which is Greece) source

» A serious dent in the stock market’s mood: Earlier in the day, things were looking up — France and Germany, the two responsible parents of the region, pushed a new treaty to convince the rest of the region to shape up, and Italy’s Mario Monti made a good impression on investors by introducing a sweeping austerity plan in the country over the weekend — but the S&P decision sucked the life out of the room. It’s not the first time S&P has played the heavy, either.

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19:58 // 2 years ago
November 28, 2011
The negative outlook indicates a slightly greater than 50 percent chance of a downgrade over a two-year horizon.
Credit ratings agency Fitch • Explaining the negative outlook they gave the U.S.’ AAA credit rating. Why the lower outlook? Well, they say there’s “considerable uncertainty surrounding the economy’s potential output.” Well, there won’t be as long as we can figure out a way to turn riots over $2 waffle irons into a sustainable moneymaking endeavor for the U.S. economy at large. We’re sure we can make it happen. Fitch’s downgraded outlook follows S&P’s straight-up downgrade a few months back. source (viafollow)
23:59 // 2 years ago
September 30, 2011

Stock market suckage: A crappy quarter, put to bed by a crappy day

  • bad Today was not a good day for the stock market in general, with all three major indexes down more than two percent amid negative economic data from China, which raised fears that another economic slowdown was coming.
  • worse This is the final day of the quarter on Wall Street, and the results aren’t very good. The S&P, for example, lost more than 14 percent this quarter. Fears of an economic slowdown weighed on investors’ minds after the 2008 crisis. source
16:52 // 2 years ago
September 12, 2011

S&P parent and textbook maven McGraw-Hill to split in two

  • what McGraw-Hill, a company best-known for two things, school textbooks and credit ratings, will be splitting these incongruent halves into two public companies. They’re the parent company of S&P, whose president recently announced his resignation.
  • why The company has taken heat from a couple of activist shareholders in recent months, on top of the heat S&P has taken for lowering the U.S. credit rating and their role in the financial crisis. The company says this plan was already in the cards, though. Suuuure. source

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14:20 // 3 years ago
August 22, 2011
S&P’s President Deven Sharma: I’m stepping down, homies: We know what you’re thinking — his departure had something to do with this mess. Well, you’d be wrong; apparently, his departure’s been planned for months. source Follow ShortFormBlog

S&P’s President Deven Sharma: I’m stepping down, homies: We know what you’re thinking — his departure had something to do with this mess. Well, you’d be wrong; apparently, his departure’s been planned for months. source

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21:49 // 3 years ago
August 18, 2011

On people who read selectively to support their own views

logicallypositive said: SEC is using its regulatory powers to bully S&P for making an observation anyone who isn’t blind could see coming from a mile away

» SFB says: Which part of “This investigation began before S&P lowered the U.S. credit rating" did you miss? And also, it’s the U.S. Justice Department investigating this particular aspect; the SEC is handling a different investigation entirely, one that’s ongoing.

11:35 // 3 years ago

S&P facing Justice Department scrutiny over mortgage securities ratings

  • what The U.S. Justice Department is investigating whether S&P kept the credit ratings on certain bonds backed by mortgage debt higher in an effort to protect the company’s business concerns.
  • why See: The financial crisis, which happened in part due to toxic mortgage securities that had inflated credit ratings. S&P’s ratings played a huge role in this whole mess, BTW. source

» And in case you were wondering: This investigation began before S&P lowered the U.S. credit rating, though there’s a good chance it will now be informed by it. Anyway, if you don’t understand the credit ratings issue, here’s a good way to put it: Companies pay the agencies for high ratings.  Kinda like if Warner Bros. paid Roger Ebert to recommend the latest Harry Potter movie. Now imagine if Ebert recommended “Birdemic" based on his financial interests. This would be extremely unethical behavior for journalists. But did S&P do something like that?

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11:22 // 3 years ago
August 16, 2011
Fitch isn’t like S&P: Unlike the brouhaha about S&P downgrading the U.S. credit rating, our friends at Fitch aren’t going to rock the boat … well, unless Fitch decides to get in bed with Abercrombie again. Then we’re in trouble.

Fitch isn’t like S&P: Unlike the brouhaha about S&P downgrading the U.S. credit rating, our friends at Fitch aren’t going to rock the boat … well, unless Fitch decides to get in bed with Abercrombie again. Then we’re in trouble.

9:45 // 3 years ago
August 10, 2011

French credit weaknesses pushing markets down worldwide

The cost of insuring France’s debt rose to a record high today. And unlike the United States, France can’t just increase their money supply to pay its creditors. Partly as a result, it’s the most indebted of all European AAA-rated countries. It’s having a ripple effect that’s driving markets down worldwide. While S&P and the two other major ratings firms say they have no plans to downgrade France’s credit rating, it’s evident that investors are not as confident in the country’s financial situation. source

14:10 // 3 years ago
August 9, 2011
10:59 // 3 years ago