ZeroHedge: Equities In Dallas And Sovereign Debt Ratings:
All else aside, when the President of a country states repeatedly that we could default, someone at the rating agency is bound to notice. Even the Italian politicians take time away from their various antics to mention that Italy is in great shape and will always pay her debts. I just don’t see S&P doing anything else in the U.S. for awhile.
That pretty much nails it. Instead of talking up the economy, the President talked it down as he demagogued his side of the issue. That, combined with the fact that S&P wanted $4 trillion or more in cuts, instead of the smaller amount agreed to, has seriously undercut confidence.