Knives being sharpened?

Watch for new austerity at the rating agencies as they hunker down for the storm of inquisitional hearings and investigations in the wake of the sub-prime debacle. The agencies appear to be in regulators' cross-hairs -- and senators and congress members love to have someone they can use as a lightning rod.

Rumors of layoffs are swirling at S&P...don't be surprised to see some high level (MD level) departures in the coming weeks.