Investors reacted to this long profits cycle by adjusting the stockmarket rating.

ECONOMIST: Buttonwood: A gap in the hedge | The

Still, the fact that these industry giants retained the highest rating calmed investors, who had worried that downgrades could trigger a vicious cycle, a fore-selling of bonds, leading to more losses for the big banks and increased credit costs for consumers, city government and others.

NPR: Stocks Climb as Ambac, MBIA Keep Ratings