10
Aug
2011
3 Lessons from the S&P downgrade
Categories: Financial Services
It’s hard to know if Standard & Poor’s believed its Friday-night downgrade of the US credit rating was a routine action or something unusual. After all, the agency had warned about the risks of a downgrade, and many in the market believed it was possible, if not likely. And it announced the decision in the same way as any other rating action, with a published report and a news release.
But if S&P might have viewed the downgrade as a routine matter, policymakers and market professionals saw it as highly unusual and
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