Talk about screwing up a brand name. Standard and Poors, already suffering from a major credibility issue from its approval of all things sub prime, has almost guaranteed irrelevancy for rating agencies in the years ahead. Rating a business is one thing, but rating any government with the ability to print money, tax, and claim almost any property, is kicking a sleeping dog.
Taken from the various colossal business strategy blunders such as New Coke, the business heads of S&P may have believed by attacking U.S./Obama credibility, they might create a stronger voice among Republicans in the yet to be determined rules regarding the implementation of financial regulations of Dodd/Frank. Whatever the reason, both political parties will ultimately find it in their best interest to hastened the day where S&P will be legislated to a minor role in the credit worthiness review process for all business entities.
Fed will have to defend itself and Treasury regarding the S&P attack and will probably develop another all things easy for business plan as markets price adjust to the continuing debt rating issues.
