More flak for the ratings agencies in the FT today with the article "Warning: rating agencies can do you harm", suggesting that agencies have moved from under-assessing risk (and causing financial damage in the process) to now cautiously over-assessing risk (and causing financial damage in the process).

The recent downgrading of Greece, Spain, Portugal (and potentially Ireland) won't gain them any political friends in the EU review of their role in the markets - all recent news seems to lead to "tails you lose, heads you lose" for these institutions and points to further trouble ahead…