US Credit-Rating Agencies Win Portuguese Elections

Portugal's pro-austerity prime minister Passos Coelho stays in power. Gustavo Miguel Fernandes /Shutterstock.com
The credit-rating agencies Standard & Poor's and Moody's Investors Service played leading roles in the financial crisis of 2008. They provided AAA ratings to securities that were in truth toxic. These ratings made risky debt as good as cash in the bank. And the reason why these mortgage-backed securities were in such high demand at the time is they had higher yields than governmen