I know rating agencies have done a terrible job at assessing the banking sector health up to 2007. And this is a big faux pas on their part if I may say so. However, it is time we should start paying attention to what they are saying.
Take for example the latest development where S&P is putting on negative outlook all basically euro zone debt. Right after their announcement a plethora of political messages came out trying to undermine the credibility of the rating agency or their analysis.
Before you succumb to political propaganda you might like to take a look at the next graph: Euro zone debt as percentage of GDP. Don’t you think that we should be at least a little worried?