Who are these credit rating agencies & why are they holding us hostage?

[pghquest]

Originally Posted by Coachgns

The purpose of this thread was to question WHO the agencies are, and what RIGHT do they have to TELL the American people: Do It My Way Or Else? For example, S&P says we have to cut $4T to keep the AAA rating. WHY? Why not 1, or 100, or increase? That is one entities OPINION. WHo is it that makes that decision? How?

There are already lots of threads on here with pros & cons of increasing the debt ceiling.

Who are you to say that credit agencies cant create ratings?

They are of course entitlted to their OPINION,but their OPINION is relied upon by investors all around the world in order to determine what investments are worth the interest being paid.

[LauraC]

OP, you might like this article:

Opinion: Why U.S. credit rating doesn?t matter - Thomas M. Beck - POLITICO.com

[sanrene]

They are inserting themselves into the political and legislative process, something I believe is unprecedented until now.

They have no right and should not be trying to influence policy makers OR the markets with their threats.

I'm thinking someone in this administration prodded them to do it and that is why the GOP is investigating the question.

[AuDiBelle]

These are the same ratings agencies that claimed our credit default swaps were excellent investments. We all know how well that turned out for our financial system(s).