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Megan McArdle

Megan McArdle - Megan McArdle is a senior editor for The Atlantic who writes about business and economics. She has worked at three start-ups, a consulting firm, an investment bank, a disaster recovery firm at Ground Zero, and The Economist. She is currently on leave.
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Megan was born and raised on the Upper West Side of Manhattan, and yes, she does enjoy her lattes, as well as the occasional extra-dry skim-milk cappuccino. Her checkered work history includes three start-ups, four years as a technology project manager for a boutique consulting firm, a summer as an associate at an investment bank, and a year spent as sort of an executive copy girl for one of the disaster-recovery firms at Ground Zero � all before the age of 30.

While working at Ground Zero, Megan started Live From the WTC, a blog focused on economics, business, and cooking. She may or may not have been the first major economics blogger, depending on whether we are allowed to throw outlying variables such as Brad Delong out of the set. From there it was but a few steps down the slippery slope to freelance journalism. She has worked in various capacities for The Economist, where she wrote about economics and oversaw the founding of Free Exchange, the magazine's economics blog. She has also maintained her own blog, Asymmetrical Information, which moved to The Atlantic, along with its owner, in August 2007.

Megan holds a bachelor's degree in English literature from the University of Pennsylvania and an M.B.A. from the University of Chicago. After a lifetime as a New Yorker, she now resides in northwest Washington, D.C., where she is still trying to figure out what one does with an apartment larger than 400 square feet.

What Will Fitch Do?

By Megan McArdle
Aug 8 2011, 1:04 PM ET Comment

Adam Ozimek says that despite what you may have heard, Fitch has not affirmed its AAA; they're still reviewing the matter.  (Moodys is also apparently threatening to downgrade us by 2013 if matters don't improve.  Ozimek identifies what I think is the key question:


So despite media reports like those above, Fitch has not "formally reaffirmed" the AAA rating, and a downgrade appears to be on the table for their upcoming review.

One thing to consider is that an S&P downgrade could make a Fitch downgrade more or less likely.

But which is it?  I can see it two ways:


The S&P downgrade radically raises the consequences of a Fitch downgrade.  As I understand it, contracts and regulators that require AAA tend to require it from two out of three of the ratings agencies.  That makes Fitch the swing vote.  They might hesitate to be the people who trigger a financial crisis.

On the other hand, there's the herd factor.  If Fitch ends up downgrading the US later, they look stupid for not seeing it sooner.  They might want to get ahead of the curve.

I sure hope they're more worried about markets than their retrospective reputation.  But I do not generally expect to find altruism in financial markets.



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