Jim Chanos was on Bloomberg TV last night discussing S&P's downgrade of US debt. Chanos has been bearish on the rating agencies for 3-4 years. Chanos noted that S&P made a $2 trillion mistake. He thinks it is ironic that the rating agencies who got us into the financial crisis and our current debt mess, are now downgrading us because of it. Chanos also thinks the Credit Default Swap spreads (which is the market), did a far better job on getting the ratings right on sovereign debt than the rating agencies themselves.
Below is the full video: