Re: [Marxism] Background on Standard and Poor's

[Einde O'Callaghan]

==
Rule #1: YOU MUST clip all extraneous text when replying to a message.
==


On 06.08.2011 16:15, Louis Proyect wrote:


Meant to include this as well, from the S&P statement explaining their
downgrading of US creditworthiness.


Standard capitalism. Poor performance.

So the allegedly unthinkable has happened. Yes, it’s AAArmageddon day. 
Frankly, armageddon sick of this nonsense. Credit rating agency Standard 
and Poor’s has cut the long-term US rating by one notch to AA+ with a 
negative outlook, citing concerns about budget deficits. S&P say the US 
deficit reduction plan, passed last week, doesn’t go far enough. There 
isn’t enough austerity. There are too few job losses. The rich are 
paying too much tax and the poor are getting off lightly. That is the 
top and bottom of economic policy in S&P world. The US is already 
struggling with huge debts, unemployment of 9.1% and fears of a possible 
double-dip recession. So what is to be done? Why, rip more demand out of 
an already staggering economy.


So who the hell are Standard and Poor’s and what credentials do they 
have for their actions?


Rest at: 

He also provides the following link: 
. 
The author of this hatchet job on the rating agencies, Edmund Conway, is 
no socialist firebrand, being a former journalist on the Daioly 
Telegraph, the most conservative daily in Britain.


Einde O'Callaghan


Send list submissions to: Marxism@greenhouse.economics.utah.edu
Set your options at: 
http://greenhouse.economics.utah.edu/mailman/options/marxism/archive%40mail-archive.com

Re: [Marxism] Background on Standard and Poor's

[Louis Proyect]

==
Rule #1: YOU MUST clip all extraneous text when replying to a message.
==


Meant to include this as well, from the S&P statement explaining their 
downgrading of US creditworthiness.


We lowered our long-term rating on the U.S. because we believe that the 
prolonged controversy over raising the statutory debt ceiling and the 
related fiscal policy debate indicate that further near-term progress 
containing the growth in public spending, especially on entitlements, or 
on reaching an agreement on raising revenues is less likely than we 
previously assumed and will remain a contentious and fitful process.


In addition, the plan envisions only minor policy changes on Medicare 
and little change in other entitlements, the containment of which we and 
most other independent observers regard as key to long-term fiscal 
sustainability.


full: 
http://www.marketwatch.com/story/text-of-sp-downgrade-of-us-rating-2011-08-05



Send list submissions to: Marxism@greenhouse.economics.utah.edu
Set your options at: 
http://greenhouse.economics.utah.edu/mailman/options/marxism/archive%40mail-archive.com

[Marxism] Background on Standard and Poor's

[Louis Proyect]

==
Rule #1: YOU MUST clip all extraneous text when replying to a message.
==


http://politicalticker.blogs.cnn.com/2011/08/06/gop-candidates-slam-obama-after-downgrade/
TRENDING: GOP candidates slam Obama after downgrade
By: CNN's Kevin Liptak

Washington (CNN) – Republican presidential candidates issued harsh 
criticism of President Barack Obama Friday after the credit rating 
agency Standard and Poor’s announced it was downgrading America’s 
long-term debt status.


“America’s creditworthiness just became the latest casualty in President 
Obama’s failed record of leadership on the economy,” Former 
Massachusetts Gov. Mitt Romney said in a statement. “Standard & Poor’s 
rating downgrade is a deeply troubling indicator of our country’s 
decline under President Obama. His failed policies have led to high 
unemployment, skyrocketing deficits, and now, the unprecedented loss of 
our nation’s prized AAA credit rating.”




http://www.nakedcapitalism.com/2008/03/moodys-and-s-avoid-cutting-ratings-on.html
Tuesday, March 11, 2008
Moody’s and S&P Avoid Cutting Ratings on AAA Subprime

A kind reader Tim e-mailed me this Bloomberg story, which apparently is 
only up on the professional version (yes, I am a member of the great 
unwashed who lacks a Bloomberg feed. Now you know what to get me for 
Christmas). I’ll add a proper link once it migrates over.


The rating agencies have taken some steps to show a new toughmindedness. 
Standard & Poor’s announced with some fanfare in January that they were 
going to either downgrade or put on negative watch $534 billion of debt. 
S&P was also so kind as to estimate that these moves could increase bank 
losses, now at roughly $130 billion, to $265 billion.


A week later, S&P announced some internal changes in an effort to 
bolster its damaged reputation. These moves seemed a bit late in coming, 
given the firestorm of well-deserved criticism aimed at rating agencies. 
Indeed, the timing was a bit sus, as they would say in Australia, coming 
only as international regulators are considering how to improve rating 
agency conduct. The decision to issue the press release now could be 
viewed as an effort to take the wind out the sails of the International 
Organization of Securities Commissions plans to implement a code of conduct.


The Bloomberg story confirms our cynicism about the S&P’s and Moody’s. 
It reports that the rating agencies have held back from downgrading AAA 
subprime related securities.




http://www.mcgraw-hill.com/site/about-us
Around the world, The McGraw-Hill Companies provides people with the 
information and insights they need to adapt and grow in changing times.


Founded in 1888, it is a leading global financial information and 
education company that helps professionals and students succeed in the 
Knowledge Economy.


Leading brands include Standard & Poor's, McGraw-Hill Education, Platts 
energy information services and J.D. Power and Associates.


By working together with our customers and partners, these brands are 
laying the foundation for a smarter, better world. (Watch the video - 
right - to hear what our employees have to say).


Harold McGraw III serves as Chairman, President and CEO.
The Corporation is headquartered in New York City and has more than 
280 offices in 40 countries.

Sales in 2010 were $6.2 billion.
Employees worldwide total approximately 21,000.





THE FLORIDA TIMES-UNION
August 3, 2006

Bush ties prove to be lucrative
by William L. Bainbridge

Country western singers Tim McGraw and Faith Hill have been getting far 
more attention than the publishing giant with a similar name that has 
been quietly gathering in our tax dollars like a hungry squirrel getting 
ready for winter.


With sales of $6 billion in 2005, publishing giant McGraw-Hill, no 
relation to the talented musical performers, produced an annualized 
return of 19% last year. Critics of President George W. Bush's 
administration have been vocal about the Bush and Cheney family ties to 
defense contractors at a time of war and, more recently, to their ties 
to the price gouging gasoline producers. Few, however, have noted the 
close and profitable relationship between the Bushes and the leadership 
of McGraw-Hill.


President Bush has managed to keep his family's nearly eighty-year 
relationship- with the McGraws alive and well - - a relationship that, 
according to THE NATION , began between the President's grandfather, 
Prescott Bush, and James McGraw Jr., great uncle of current McGraw-Hill 
Chairman Harold McGraw, III in the 1930's.


While it is generally understood and accepted that exchanging favors 
among business friends in the private sector is common practice, the 
ethics of such practices between government officials and private 
business interests is another matter. Examples in the defense