S&P Downgrades U.S. Credit Outlook

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Standard and Poors rating agency has downgraded their outlook on the U.S. government's credit rating (as opposed to downgrading the actual rating). 

When asked in the interview if he thought we would see a downgrade, Mr. Collender said, "No, I don't."  I find it interesting how he calls the rating agency's record into question because of it's failure to downgrade mortgage backed securities until after the fact.  I would agree Standard and Poors has lost integrity.  To my way of thinking, that is likely the reason they are the first rating agency to call the U.S. government on it's poor record of debt management - especially in light of all of the recent political wrangling.  If the government actually believes that was Standard and Poors' role in the financial crisis, then why has nobody ever been held accountable? 

Mr. Collender also asks, then answers, his own question, "Does this change anybody's mind, and I suspect the answer is no."  Again, I find it interesting how this news creates a significant wobble in the stock market, but the politicians continue to shrug this stuff off as old, irrelevant, news.

In my case, it isn't the threat of a downgrade, as much as it is the continual denial by politicians that they have anything to worry about that concerns me.  It is their inability to even articulate, let alone begin to implement a solution, that made me bearish on the stock market quite some time ago.  Why should we expect anything to change when nobody is being held to account?

Do you trust these guys with your money?  Do you think the situation is going to get better before it gets worse?