Ratings Agencies: Strictly in the Business of Wrecking the Economy

First they ground the economy into a bloody pulp through their corrupt, systematic, and willful ignorance on accurately rating the heaping piles of shit that were mortgage-backed securities, and now their new favorite act is sending markets into a tailspin as they rattle their sabers over downgrading the U.S. credit rating:

Moody’s Investors Service warned Thursday that it might downgrade the United States government’s sterling credit rating if Congress did not increase the nation’s debt limit “in coming weeks,” putting a spur to the sputtering talks between party leaders and the White House on a plan to restore fiscal stability.

Moody’s said a review of the credit rating was “likely” in July, given that “the risk of continuing stalemate has grown.” Its warning followed a similar one from another major ratings firm six weeks ago, and it came as the administration met Thursday with both House Republicans and Democrats in search of a deal.

It's funny how they seem interested in performing any function whatsoever only when it serves as a detriment to the economy. And check out the big brass balls on this anonymous Republican:

The treasury secretary, Timothy F. Geithner, met on Capitol Hill with House freshmen, including Republicans who have suggested that they see little or no risk in a showdown over the debt limit. Citing the Moody’s statement, Mr. Geithner urged them to support raising it or risk an economic crisis.

“We didn’t create this mess,” one Republican told Mr. Geithner, according to a person in the room.

Right - I completely forgot that the Bush tax cuts, two incredibly fucking stupid wars, and Medicare Part D were all enacted and funded by deficit spending on January 20, 2009. Ass.

And I was also not aware that it was the function of independent rating agencies to take political stances:

And second, Moody’s said, with an implicit slap at both parties, that whether the United States keeps its triple-A rating “will depend on the outcome of negotiations on deficit reduction.”

Funny how we never heard a peep out of Moody's on the deficit during the Bush years, don't you think? Someone has been drinking a little heavily from the trough of conventional wisdom Kool-Aid. I bet they would get a raging free market boner if Washington were to suddenly enact a vicious austerity program that served to demolish Medicare and Social Security while cutting both corporate taxes and top marginal rates. They would have to create a new rating above AAA that would adequately reflect their excitement.