[Home]  [Headlines]  [Latest Articles]  [Latest Comments]  [Post]  [Mail]  [Sign-in]  [Setup]  [Help]  [Register] 

"The 2nd Impeachment: Trump’s Popularity Still Scares Them to Death"

"President Badass"

"Jasmine Crockett's Train Wreck Interview Was a Disaster"

"How Israel Used Spies, Smuggled Drones and AI to Stun and Hobble Iran"

There hasn’T been ... a single updaTe To This siTe --- since I joined.

"This Is Not What Authoritarianism Looks Like"

America Erupts… ICE Raids Takeover The Streets

AC/DC- Riff Raff + Go Down [VH1 Uncut, July 5, 1996]

Why is Peter Schiff calling Bitcoin a ‘giant cult’ and how does this impact market sentiment?

Esso Your Butt Buddy Horseshit jacks off to that shit

"The Addled Activist Mind"

"Don’t Stop with Harvard"

"Does the Biden Cover-Up Have Two Layers?"

"Pete Rose, 'Shoeless' Joe Reinstated by MLB, Eligible for HOF"

"'Major Breakthrough': Here Are the Details on the China Trade Deal"

Freepers Still Love war

Parody ... Jump / Trump --- van Halen jump

"The Democrat Meltdown Continues"

"Yes, We Need Deportations Without Due Process"

"Trump's Tariff Play Smart, Strategic, Working"

"Leftists Make Desperate Attempt to Discredit Photo of Abrego Garcia's MS-13 Tattoos. Here Are Receipts"

"Trump Administration Freezes $2 Billion After Harvard Refuses to Meet Demands"on After Harvard Refuses to Meet Demands

"Doctors Committing Insurance Fraud to Conceal Trans Procedures, Texas Children’s Whistleblower Testifies"

"Left Using '8647' Symbol for Violence Against Trump, Musk"

KawasakiÂ’s new rideable robohorse is straight out of a sci-fi novel

"Trade should work for America, not rule it"

"The Stakes Couldn’t Be Higher in Wisconsin’s Supreme Court Race – What’s at Risk for the GOP"

"How Trump caught big-government fans in their own trap"

‘Are You Prepared for Violence?’

Greek Orthodox Archbishop gives President Trump a Cross, tells him "Make America Invincible"

"Trump signs executive order eliminating the Department of Education!!!"

"If AOC Is the Democratic Future, the Party Is Even Worse Off Than We Think"

"Ending EPA Overreach"

Closest Look Ever at How Pyramids Were Built

Moment the SpaceX crew Meets Stranded ISS Crew

The Exodus Pharaoh EXPLAINED!

Did the Israelites Really Cross the Red Sea? Stunning Evidence of the Location of Red Sea Crossing!

Are we experiencing a Triumph of Orthodoxy?

Judge Napolitano with Konstantin Malofeev (Moscow, Russia)

"Trump Administration Cancels Most USAID Programs, Folds Others into State Department"

Introducing Manus: The General AI Agent

"Chinese Spies in Our Military? Straight to Jail"

Any suggestion that the USA and NATO are "Helping" or have ever helped Ukraine needs to be shot down instantly

"Real problem with the Palestinians: Nobody wants them"

ACDC & The Rolling Stones - Rock Me Baby

Magnus Carlsen gives a London System lesson!

"The Democrats Are Suffering Through a Drought of Generational Talent"

7 Tactics Of The Enemy To Weaken Your Faith

Strange And Biblical Events Are Happening

Every year ... BusiesT casino gambling day -- in Las Vegas


Status: Not Logged In; Sign In

United States News
See other United States News Articles

Title: Will S&P Downgrade Be Another Y2K Scare?
Source: Naked Capitalism
URL Source: http://www.nakedcapitalism.com/2011 ... rade-be-another-y2k-scare.html
Published: Aug 6, 2011
Author: Yves Smith
Post Date: 2011-08-06 09:49:29 by lucysmom
Keywords: Chicken Little, Obama Did It, Pot, Kettle
Views: 41374
Comments: 76

It isn’t yet clear what the impact of the S&P downgrade of the US to AA+ will have. There are good reasons to believe, despite the media hyperventilating, that it won’t add up to much, and may perversely hit wobbly stock markets more than Treasury yields.

But there is a much bigger issue, namely S&P’s highly questionable conduct, the lack of any analytical process behind this ratings action, and the political implications.

Will the S&P Downgrade Have Much Immediate Impact?

Although I run the risk of being proven wrong, there are lots of reasons to think that the reaction in the Treasury market to the news will be underwhelming. We might see some reactions Monday as some investors who managed to be blindsided and aren’t happy with the downgrade exit but conversely, I know of investors who see any price softening as a buying opportunity.

Treasury yields fell 50 basis points last week despite the risk of a downgrade being very well telegraphed. S&P had asked for $4 trillion in deficit reductions (it tried disavowing that number) and made it clear it was going off to brood and might take action. And this market response took place with S&P leaking like a sieve.

Click for Full Text!


Poster Comment:

What was the S&Ps role in the mortgage crisis?

Post Comment   Private Reply   Ignore Thread  


TopPage UpFull ThreadPage DownBottom/Latest

Begin Trace Mode for Comment # 35.

#12. To: lucysmom, Badeye, A K A Stone, hondo68, Fred Mertz, Godwinson, go65, war, no gnu taxes, Skip Intro, ferret mike, jwpegler, brian s, mcgowanjm, Capitalist Eric, Mininggold (#0)

But there is a much bigger issue, namely S&P’s highly questionable conduct, the lack of any analytical process behind this ratings action, and the political implications.

Bullshit. S&P is acting honestly (at least, they're more honest than the rest of the Wall St. firms... And so the truth comes out.

I've WARNED you that there would be consequences of the profligate spending by our government... and now we're starting to see REAL results.

The "political consequences" of this, is that the truth will continue to become more noticeable in everyday life... Mainly in the form of INFLATION.

mctoejam: "deflation..." blah blah blah....

WISHFUL THINKING. The government is already defaulting, in the form of inflation. There is NO stopping it.

You lefties think this is gonna' be another Y2K?

Shit.

You're DREAMING.

Look up Ferfal, or "Surviving in Argentina," on google... to get a glimpse of what's coming HERE.

You better stock up on food, weapons, silver and/or gold, while your dollars can still buy something... because there's a storm coming... and your dollars will revert to their intrinsic value... namely, "toilet paper."

BELIEVE IT.

Capitalist Eric  posted on  2011-08-06   13:39:38 ET  Reply   Untrace   Trace   Private Reply  


#20. To: Capitalist Eric (#12)

$100 the acre.

Oil at $1 a gallon....

And you have no idea what default is.

There's a difference between 'Can't' and Won't.

But you keep believing the FedRes has something left.

First AAA to the USSA....1917....WE'RE GOING TO WAR. Loss of AAA with New Deal....NO WAR. Second AAA awarded....wait for it.....1941...WE'Re GOING BACK TO WAR...

Se a Pattern? Of course not....;}

back in February 2008:

I don't know what will come next. I don't know if the United States can crawl out of the filthy pit of empire and tyranny over the next few decades and claw its way toward some new manifestation of democracy -- or if it will just keep sinking, raging, rotting, mutating further into a war-and-torture state that must feed constantly on human flesh to survive. Of course, I hope for -- and will work toward -- the former, the new manifestation, although I honestly don't expect to see such a thing in my own lifetime. But whatever will be, one thing is certain now: the constitutional republic of the United States is a dead letter, a relic of history."

LMFAO

mcgowanjm  posted on  2011-08-06   22:40:58 ET  Reply   Untrace   Trace   Private Reply  


#34. To: mcgowanjm (#20)

$100 the acre.

Oil at $1 a gallon....

Wish in one hand, shit in the other, and tell me which one fills up faster.

And you have no idea what default is. There's a difference between 'Can't' and Won't. But you keep believing the FedRes has something left.

I know exactly what default is. Further, I know a great deal more than you, about economics. When combined with an understanding about how politicians work, how they'll do anything to stay in power, even if it means throwing their own MOTHERS under the proverbial bus, they'll be only too happy to do so.... And THAT is why the stealth-default will continue...

HOW, you may ask, is the USA doing a stealth-default? Simple. The Fed is now printing money (or more accurately, *digitally* creating it) from nothing. They control the printing presses... THAT'S what they have left....

For all your talk, and your bluster, the fact is that you don't know SHIT.

Please, HOLD all of your savings in cash... If nothing else, you'll never have to worry about toilet paper.

Capitalist Eric  posted on  2011-08-07   14:04:00 ET  Reply   Untrace   Trace   Private Reply  


#35. To: Capitalist Eric (#34)

Wrong's a Religion for you, eh CE?

LMFAO

Re: DOOM Investing

Post Mon Aug 08, 2011 8:14 am by mcgowanjm $83.49

We're almost closer to $40 than $120.

And I think I saw a $77 print somewhere.... :twisted:

"Mr Margin calling on Lines 1,2, and 3 now, sir"

Line 4:

"How much for my JPMorgan tanker of oil sitting offshore?"

BUWAHAHAHAHAHA :twisted: :shock: :? 8-)

mcgowanjm  posted on  2011-08-08   9:03:37 ET  Reply   Untrace   Trace   Private Reply  


Replies to Comment # 35.

#40. To: mcgowanjm (#35)

Wrong's a Religion for you, eh CE?

LMFAO

I've been right, all along.

I'll be sure to tell you "TOLD YA SO," as hyperinflation sets in.

The rest of your replies (since you can't keep to just ONE reply, EVER)- just a long string of mindless rantings.

You're the forums' Tourettes Boy.

Capitalist Eric  posted on  2011-08-08 11:36:12 ET  Reply   Untrace   Trace   Private Reply  


End Trace Mode for Comment # 35.

TopPage UpFull ThreadPage DownBottom/Latest

[Home]  [Headlines]  [Latest Articles]  [Latest Comments]  [Post]  [Mail]  [Sign-in]  [Setup]  [Help]  [Register] 

Please report web page problems, questions and comments to webmaster@libertysflame.com