It was front page news today, top story in WaPo, that S&P downgraded France and Austria from AAA status. Eeeeek! Except that their bond yields fell in the wake of this. The same thing happened after the US downgrade. And Japan has been downgraded 13 times, only to have the world's lowest bond yields. Really.
My question is, given the incompetence displayed by S&P and its colleagues during the mortgage fiasco, why should these actions be taken seriously?
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