[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: 41543
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 # 57.

#1. To: 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)

A country that controls its currency can always satisfy the IOUs it creates. The risk is inflation, not default. But ratings agencies assess credit ratings, not interest rate risk.

lucysmom  posted on  2011-08-06   9:55:55 ET  Reply   Untrace   Trace   Private Reply  


#2. To: lucysmom (#1)

The risk is inflation, not default. But ratings agencies assess credit ratings, not interest rate risk.

Inflation is over.

From Nixon's Gold Default to May 2005....that was inflation.

It's Deflation now, as everyone goes to cash...;}

mcgowanjm  posted on  2011-08-06   10:51:03 ET  Reply   Untrace   Trace   Private Reply  


#3. To: All (#2) (Edited)

Think $100 per acre for Prime Farmland.

mcgowanjm  posted on  2011-08-06   10:51:21 ET  Reply   Untrace   Trace   Private Reply  


#4. To: All (#3)

And then $50.

mcgowanjm  posted on  2011-08-06   10:51:50 ET  Reply   Untrace   Trace   Private Reply  


#5. To: mcgowanjm (#4)

Think $100 per acre for Prime Farmland.

And then $50.

I suppose that translates into a 50% cut in food prices as well.

Thunderbird  posted on  2011-08-06   11:00:44 ET  Reply   Untrace   Trace   Private Reply  


#6. To: Thunderbird (#5)

I suppose that translates into a 50% cut in food prices as well.

Remember gasoline for a $1?

It'll be a $ again.

Except that the avg yearly salary will be $7500.

And you'll be growing your own food, btw....;}

mcgowanjm  posted on  2011-08-06   11:03:42 ET  Reply   Untrace   Trace   Private Reply  


#7. To: mcgowanjm (#6)

And you'll be growing your own food, btw....;}

Why?

Why should deflation remove the capitalist impulse to provide for oneself by providing for others?

Thunderbird  posted on  2011-08-06   11:29:08 ET  Reply   Untrace   Trace   Private Reply  


#22. To: Thunderbird (#7)

Why should deflation remove the capitalist impulse to provide for oneself by providing for others?

It takes money.

Will you have it? Not credit. And definitely No Debt. Actual Linen Dead Presidents. Or you're a slave.

And the Capitalist 'Impulse' is to Oligarchy/Monopoly/ Kleptocracy/Plutarchy....the Top 50 000 owning the Top 60%.

mcgowanjm  posted on  2011-08-06   22:48:29 ET  Reply   Untrace   Trace   Private Reply  


#33. To: mcgowanjm (#22)

It takes money.

No kidding McGoo...why do you assume no one besides yourself has any?

Thunderbird  posted on  2011-08-07   10:58:57 ET  Reply   Untrace   Trace   Private Reply  


#37. To: Thunderbird (#33)

It takes money.

No kidding McGoo...why do you assume no one besides yourself has any?

Yeah Shitbird weighs in.

Don't call me names....just sayin...;}

Becuase it's NOT an Assumption.

The Bottom 90% are tapped out!

What part of Since Nixon & 1974 and then Reagan Stagnant wages, $1.5 Quadrillion in Debt derivatives are you NOT getting?

8D

mcgowanjm  posted on  2011-08-08   9:44:45 ET  Reply   Untrace   Trace   Private Reply  


#41. To: mcgowanjm (#37)

What part of Since Nixon & 1974 and then Reagan Stagnant wages, $1.5 Quadrillion in Debt derivatives are you NOT getting?

Maybe you should focus a little harder on the plain fact that not everyone has spent the last 40 years engaged in irrational exurberance.

Thunderbird  posted on  2011-08-08   12:00:18 ET  Reply   Untrace   Trace   Private Reply  


#51. To: Thunderbird (#41)

Maybe you should focus a little harder on the plain fact that not everyone has spent the last 40 years engaged in irrational exurberance.

BUWAHAHAHAHAHAHA

which greenspan started.

Sweet baby hesus...the criminal prescribes the anit dote....

insane...8D

mcgowanjm  posted on  2011-08-09   9:37:43 ET  Reply   Untrace   Trace   Private Reply  


#54. To: mcgowanjm (#51)

which greenspan started.

Greenspan didn't invent the bubble economy, he was simply an instrument of creative destruction through which many of the financial problems this nation faces today were created. Larry Summners is another such creature, as was Paulson.

-btw gold is a bubble too

Thunderbird  posted on  2011-08-09   9:48:52 ET  Reply   Untrace   Trace   Private Reply  


#55. To: Thunderbird (#54)

Greenspan didn't invent the bubble economy

OF course he did:

Reagan Greenspand Commodities Trading Act 1982....LMFAO

NEWS FLASH:

Predator drone seen circling S&P Headquarters....

mcgowanjm  posted on  2011-08-09   9:57:03 ET  Reply   Untrace   Trace   Private Reply  


#56. To: mcgowanjm (#55)

OF course he did:

Greenspan didn't 'invent' anything McGoo...economic bubbles have been with us since the dawn of civilization.

If you want a more complete understanding of the goings on today you might be well served by studying the goings on in ancient Greece.

Thunderbird  posted on  2011-08-09   10:12:31 ET  Reply   Untrace   Trace   Private Reply  


#57. To: Thunderbird (#56)

Or Spain before the defeat of the Armada...

war  posted on  2011-08-09   11:12:02 ET  Reply   Untrace   Trace   Private Reply  


Replies to Comment # 57.

        There are no replies to Comment # 57.


End Trace Mode for Comment # 57.

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