U.S. Treasury Dept: Standard And Poor’s Made $2 Trillion Error; S&P: Tax Revenues Are Needed

Sources say they focused too  much on the messy political process.

The error was centered in the ratings agency’s estimates of discretionary spending and was pointed out by Treasury and it raised questions about S&P’s credibility, the sources said.

A Treasury spokesman also raised the issue of the huge error, reflecting administration concern at S&P’s decision to downgrade U.S. debt.

Treasury says S&P didn’t give enough consideration to the debt ceiling compromise.

…one of S&P’s explicit criticisms of the compromise was that it didn’t address the biggest drivers of the nation’s debt — Social Security and Medicare — and didn’t allow for additional tax revenue.

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