While the S&P is mostly useless, they did get one thing right about the downgrading of Europe: S&P | Credit FAQ: Factors Behind Our Rating Actions On Eurozone Sovereign Governments | Americas There were posters telling me that the reason the S&P downgraded the USA was because of reckless and dangerous deficit spending with no end in sight. I assume those people would want balanced budgets in America now at whatever cost. Now the S&P is telling us that austerity alone cannot solve the problems of Europe. What would those same people say now? Also, yes, I caught this from Paul Krugman's blog.