Kristol and Krugman Agree!

Yesterday morning, the boss went on Fox News Sunday and said that "the rating agencies are idiots." He was, of course, referring to Standard & Poor's and Moody's, who "have been wrong about everything."

It seems that New York Times columnist Paul Krugman was watching, or perhaps he checked our website yesterday afternoon, where video had been posted of the entertaining segment. Yesterday evening, Krugman basically repeated the boss's line: 

The invaluable Mike Konczal tells us the truth about the rating agencies and public-sector debt: not only do they constantly make mistakes, they do so in a consistent direction....

The point is that when S&P or Moody’s speaks, that’s not the voice of “the market”. It’s just some guys with an agenda, and a very poor track record. And we have no idea how much effect their actions will have.