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RE: How do you figure making US bonds worth less will raise their rates?

OK, it seems to me that a lower rating that suggests even a slightly higher risk will require a higher return to match the increased risk. I am no expert but it seems to me that a bond worth less results in a higher return.

Let me ask you and all others reading this a question.

Moody’s, S&P Caved In to Ratings Pressure From Goldman, UBS Over Mortgages

Is S&P too big to be held liable? No one cares that it appears there is proof that S&P was one of the “key enablers of the financial meltdown” that led to this mess?

No one cares that S&P could well be the Arthur Andersen of the bond ratings industry?

Personally their holier-than-thou attitude is wholly annoying!

OK, it seems to me that a lower rating that suggests even a slightly higher risk will require a higher return to match the increased risk.

Not really, the two don't have a correlation like that. A bond that is worth less is simply worth less and will take a harder sell to get someone to buy it. People will gamble one high risk stocks for a chance at a higher return but there's no guarantee, the return may be lower or negative.

I don't see a plot from great banking bogeymen, but a serious symptom of failed socialist policies here and abroad.