Measuring the influence of S&P's outlook of U.S.

The ratings agency Standard and Poor's recently warned the United States that it could lose its status as the world's most secure economy if lawmakers don't rein in the nation's nearly $14.3 trillion debt. S&P changed its outlook on the United States from "stable" to "negative." Can ratings be trusted? "I always tell people they should trust themselves," said Bruce Rader, assistant professor of finance at Temple's Fox School of Business. "You have to do your homework. And that's what a lot of people don't do. When you rely on other people to do your homework for you, what you usually do is you're taking advice from somebody who has a vested interest in you doing something."
April 24, 2011 | The Comcast Network, KYW News Radio