Posted by traderhub > 2011-08-10 14:58 | Report Abuse

S&P has downgraded US debt, this has created panic in the markets. But the question is should we take S&P seriously when these credit rating agencies have proved that their understanding about economies is indeed poor.

Remember, it was the same S&P that gave AAA rating to mortgage backed securities in 2005-2007 and we all know what happened after that. So I guess one should take this and apply own judgement in the current situation. After all, Apple and Google have been making record earnings in the recent quarters.