So Fitch is not going to follow suit. There are 3 rating agencies, and institutional investors usually follow the majority. Since Moody’s is not going to downgrade at this juncture, S&P’s move … doesn’t count.
Greg Guttfield nailed it last week:
So, it's hard to judge this downgrade, because it's like getting a report card from a drunk teacher.
I mean - If these agencies were so smart, why didn't they do it sooner?
As Dana Vachon tweeted to me, Where were these "credit agencies" during the housing bubble?
My guess is, hot tubbing.
Can't blame them. Hot tubbing is fun.
Which means the downgrade was not a logical reaction, but a scolding meant to make everyone feel bad. [emphasis added]
Now, irrelevent ninnies like John Kerry are blaming the Tea Party.
But how can you blame them- when they got nothing they wanted?
The debt ceiling debate culminated in the highest debt ceiling bump ever. The spending cuts were like a fat guy forgoing the sprinkles on his half gallon of Chunky Monkey - and calling it a diet.
But I can see why the Tea Party is getting hammered on this.
No one represents them - for they are them.
Let me put it this way: the tea party is a principle, without a person.