S&P Puts A Stake In the Ground

S&P, one of the three rating agency enablers of the housing debacle, today took the astute position of downgrading the outlook for U.S. Treasury debt, ostensibly because of the forecast for budget deficits into the foreseeable future. The Treasury Department put out an insipid press release, in which a spokesperson bemoaned S&P's bad political judgment. In fact, S&P deftly succeeded in differentiating themselves from their rating agency competitors and in showing gumption by restating the blindingly obvious. There's no downside risk to S&P from their move--congratulations to their marketing department.