I just want to point out that there are claims that the agency
has a 2 trillion dollar mistake. If much is made of that, this
could be an opportunity. It could be a buying opportunity anyway.
Everyone is very frightened right now.
That was ironed out on Friday and was likely the reason why we
bounced from 1170 to 1210.....fact is everyone knows about that
mistake... and it doesn't matter. The downgrade was still made even
after recalculating the numbers.
Much of the reason we have a large deficit is that we are the
policeman for the world. Examples : Kuwait, Iraq, Afghanistan on
and on. Folks normally pay for protection like that.
Reid talks about taxes let's take it up a notch and impose
a world-wide global security tax.
Just another view. There are times we are ahead of and
behind the news. If the CNBC report from the article is
true
"Throughout Friday, markets were rife with speculation that
S&P, which has had a negative outlook on the U.S. since April
18, would downgrade the country’s credit from its current triple-A
level and that it could come as early as Friday night."
then we could also be in one of those "short the rumor cover the
news" situations. The other interesting and possibly part
where I give S&P respect is that they chose to do this after
the futures closed on a Friday. Reason being is the skeptic
in me would love to say oh yea they were selling futures on the
close but really I think they did it to allow there to be
digestion, ex-trading, of the news and potential
ramifications. We will now be talking and somewhat accepting
this even over the weekend and on all the shows. Respected
economists and traders will be allowed to air their opinions and
gameplan etc. and possibly, possibly this becomes less of an event
than we think. JMHO
You think this makes the Tuesday Fed meeting even more
scrutinized!?
Well maybe not "respect" but I am not opining over every word I
type on a chat board. I still prefer the fact that it was not
done at 3:30 pm EST on a Friday and was done after the futures
closed. Results may end up the same but there is time to
digest the news.
I think you might be reading my post as a supporter of the
ratings agencies. I think they are not really worth much and
their notes and gradings should be highly scrutinized. This
is slightly off topic but Wednesday my best friend lost his
father. I went over that night to be with him and support him
and when I pulled up he met me outside to tell me that he had not
yet told his daughter who was inside the home. He was
planning on telling her that night. I said why do it tonight,
wait until the morning. Family will then be in town and she
won't have to try and get to sleep. There is never the right
time to tell her that here Pop Pop passed but there can possibly be
a better time. Now that is a grossly different situation but
my point was I can be the eternal skeptic but if I step back and
think of when I would prefer them to do it I cannot think of a time
that I would say oh that's so much better.
Lastly, just a side note, don't start the post with "please
tom". Feel free to disagree with me but that comes across
disrespectfully.
While everybody is crapping their pants about Black Monday on US
debt downgrade, looking at the Bear Stearns case might lend some
clues as to what might happen. They were announced BK on
Sunday March 17. The market had a bad Monday.... shorts piled
in.... then see ya! Huge 10 week rally from 1260 to 1425.
It didn't make sense, except in hindsight. Bearishness
was extreme. The smart money had already sold, late shorts
were burned. Thoughts on a repeat?
Could be a capitulatory bottom. I've heard it somewhere
that the market never goes straight down but when caught on the
wrong side of a move in a big ole wave 3 it sure feels that
way!
There should be an investigation into this downgrade and the
politics involved. If you read the actual downgrade,
it was a political document more than anything else.
Go on the web and read the document. Does anyone on
here find this company credible? I'm not saying the US
doesn't have lots of problems. However, who
believes a company that screwed up the AAA ratings of the credit
default swaps, announces news to create more volume on the
S&P500 and others that they own, and poisons are
children with their revisionist left leaning books?
Speaking of books... I was in the library the other day and
happened to pick up a book on the history of Presidents....
Publisher McGraw HILL. Under President Bush I there
was a caption how millions on oil spilled in the ocean when the
Exxon Valdez bottomed and the picture in the book was not pretty.
Under President Obama's page, in mentions
the Golf Oil Spill and picture in the book showed PRETTY FLOWERS!
This is the GARBAGE the Children in the US are being
taught.
Companies like McGraw Hill need to be put out of business!
I'm not so sure I agree. !4 trillion dollars is a whole
lot of cash given there are only 320 million people in the US and
with real unfunded liabilities of 60 trillion with ss, medicare,
and medicaid it's even more ridiculous. I think a wake up
call is needed and I'll bet there was a huge amount of pressure on
S&P not to make the call from the government. Just my
opinion and that's all it is -an opinion.
Like I said... The US has a lot of problems....
However, there is more than enough money coming in to
pay the interest on the debt. Now go read the
document and tell me it isn't solely based on politics.
A left wing company that is in the bag to get taxes increased
and is in the bag for this administration. Geitner
and the rest can kick and holler in the media.. but the truth is
that this is exactly what they wanted so they can get a tax
increase or gut the defense budget.
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We all knew it was coming eventually
Posted by matt on 6th of Aug 2011 at 02:48 am
S&P Downgrades US Credit Rating to AA-Plus
I just want to point
Posted by chlo888 on 6th of Aug 2011 at 07:34 pm
I just want to point out that there are claims that the agency has a 2 trillion dollar mistake. If much is made of that, this could be an opportunity. It could be a buying opportunity anyway. Everyone is very frightened right now.
"2 trillion dollar mistake" That was
Posted by chartboy on 7th of Aug 2011 at 04:50 pm
"2 trillion dollar mistake"
That was ironed out on Friday and was likely the reason why we bounced from 1170 to 1210.....fact is everyone knows about that mistake... and it doesn't matter. The downgrade was still made even after recalculating the numbers.
C
isn't this great...Harry Reid is
Posted by marketguy on 6th of Aug 2011 at 12:12 pm
isn't this great...Harry Reid is using the fact that taxes "weren't raised" as to "why" we were downgraded...
so France is AAA and we are AA+ (hmmm).....for god's sake, Spain is AA!!!
anyone see these S&P idiots on Fox this morning? freaking joke....
Security Tax
Posted by meaghan on 6th of Aug 2011 at 01:22 pm
Much of the reason we have a large deficit is that we are the policeman for the world. Examples : Kuwait, Iraq, Afghanistan on and on. Folks normally pay for protection like that.
Reid talks about taxes let's take it up a notch and impose a world-wide global security tax.
amen meaghan
Posted by marketguy on 6th of Aug 2011 at 02:19 pm
great line from the article matt posted.
Posted by Michael on 6th of Aug 2011 at 10:12 am
"A judgment flawed by a $2 trillion error speaks for itself," a Treasury spokesperson said
Just another view. There are
Posted by tom on 6th of Aug 2011 at 09:58 am
Just another view. There are times we are ahead of and behind the news. If the CNBC report from the article is true
"Throughout Friday, markets were rife with speculation that S&P, which has had a negative outlook on the U.S. since April 18, would downgrade the country’s credit from its current triple-A level and that it could come as early as Friday night."
then we could also be in one of those "short the rumor cover the news" situations. The other interesting and possibly part where I give S&P respect is that they chose to do this after the futures closed on a Friday. Reason being is the skeptic in me would love to say oh yea they were selling futures on the close but really I think they did it to allow there to be digestion, ex-trading, of the news and potential ramifications. We will now be talking and somewhat accepting this even over the weekend and on all the shows. Respected economists and traders will be allowed to air their opinions and gameplan etc. and possibly, possibly this becomes less of an event than we think. JMHO
You think this makes the Tuesday Fed meeting even more scrutinized!?
Timing
Posted by philr on 7th of Aug 2011 at 02:52 pm
They waited until late Friday because they and the 2 tril mistake. Otherwise it would have happened earlier.
please Tom...respect for them? how about this for their timing....they wait until "after" the close of futures to trap everyone plain and simple...will build anxiety which will blow Sunday night...
Posted by marketguy on 6th of Aug 2011 at 10:12 am
Title: click to expand Well maybe
Posted by tom on 6th of Aug 2011 at 11:09 am
Well maybe not "respect" but I am not opining over every word I type on a chat board. I still prefer the fact that it was not done at 3:30 pm EST on a Friday and was done after the futures closed. Results may end up the same but there is time to digest the news.
I think you might be reading my post as a supporter of the ratings agencies. I think they are not really worth much and their notes and gradings should be highly scrutinized. This is slightly off topic but Wednesday my best friend lost his father. I went over that night to be with him and support him and when I pulled up he met me outside to tell me that he had not yet told his daughter who was inside the home. He was planning on telling her that night. I said why do it tonight, wait until the morning. Family will then be in town and she won't have to try and get to sleep. There is never the right time to tell her that here Pop Pop passed but there can possibly be a better time. Now that is a grossly different situation but my point was I can be the eternal skeptic but if I step back and think of when I would prefer them to do it I cannot think of a time that I would say oh that's so much better.
Lastly, just a side note, don't start the post with "please tom". Feel free to disagree with me but that comes across disrespectfully.
really Tom, 1. no "disrepect" intended. 2.
Posted by marketguy on 6th of Aug 2011 at 11:39 am
really Tom,
1. no "disrepect" intended.
2. I've been disrepected for two+ years on the blog and can't say I've seen you step in at any point so give me a break.
Bear Stearns BK
Posted by kalinm on 6th of Aug 2011 at 06:29 am
While everybody is crapping their pants about Black Monday on US debt downgrade, looking at the Bear Stearns case might lend some clues as to what might happen. They were announced BK on Sunday March 17. The market had a bad Monday.... shorts piled in.... then see ya! Huge 10 week rally from 1260 to 1425. It didn't make sense, except in hindsight. Bearishness was extreme. The smart money had already sold, late shorts were burned. Thoughts on a repeat?
Could be a capitulatory bottom.
Posted by john9o9 on 6th of Aug 2011 at 07:11 am
Could be a capitulatory bottom. I've heard it somewhere that the market never goes straight down but when caught on the wrong side of a move in a big ole wave 3 it sure feels that way!
McGraw Hill owns SandP
Posted by zach06 on 6th of Aug 2011 at 07:44 am
There should be an investigation into this downgrade and the politics involved. If you read the actual downgrade, it was a political document more than anything else. Go on the web and read the document. Does anyone on here find this company credible? I'm not saying the US doesn't have lots of problems. However, who believes a company that screwed up the AAA ratings of the credit default swaps, announces news to create more volume on the S&P500 and others that they own, and poisons are children with their revisionist left leaning books?
Speaking of books... I was in the library the other day and happened to pick up a book on the history of Presidents.... Publisher McGraw HILL. Under President Bush I there was a caption how millions on oil spilled in the ocean when the Exxon Valdez bottomed and the picture in the book was not pretty. Under President Obama's page, in mentions the Golf Oil Spill and picture in the book showed PRETTY FLOWERS! This is the GARBAGE the Children in the US are being taught.
Companies like McGraw Hill need to be put out of business!
I'm not so sure I
Posted by johnc on 6th of Aug 2011 at 07:54 am
I'm not so sure I agree. !4 trillion dollars is a whole lot of cash given there are only 320 million people in the US and with real unfunded liabilities of 60 trillion with ss, medicare, and medicaid it's even more ridiculous. I think a wake up call is needed and I'll bet there was a huge amount of pressure on S&P not to make the call from the government. Just my opinion and that's all it is -an opinion.
Well Johnc
Posted by zach06 on 6th of Aug 2011 at 09:34 am
Like I said... The US has a lot of problems.... However, there is more than enough money coming in to pay the interest on the debt. Now go read the document and tell me it isn't solely based on politics. A left wing company that is in the bag to get taxes increased and is in the bag for this administration. Geitner and the rest can kick and holler in the media.. but the truth is that this is exactly what they wanted so they can get a tax increase or gut the defense budget.