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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: 41622
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. Poster Comment: What was the S&Ps role in the mortgage crisis?
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#37. To: Thunderbird (#33)
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
Don't tell me yukon has himself another screen name? Guess it's obvious by the juvenile posting style.
“America is at that awkward stage; it's too late to work within the system, but too early to shoot the bastards.”---Claire Wolfe Yeah Shitbird weighs in. Don't tell me yukon has himself another screen name? Guess it's obvious by the juvenile posting style. The more things change, the more they remain the same...;} " Of course it will be expected that at some point some other archaic form of quantitative easing part three will be brought to the table but the Federal Reserve is a faith based system. Suddenly people are having less and less faith from a central bank that has sat idly by for the working and middle class while allowing the wealthiest in this country to become even wealthier simply by gaming the current financial system. The markets are not pleased with raising the debt ceiling without actually looking for new revenue streams. This is like getting a credit card line increase without your income rising." Come on, Obama. Talk about cutting Social Security again...;}
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.
It used to be the leftists that had bumper-stickers that said things like "Question Authority.' Today they follow slogans from 1984: War is peace. They blindly LOVE Big Brother. They believe competition, pride & profiting from ones labor, are evil things to be banished. Stephen King observed, "The beauty of religion mania is that it has the power to explain everything... [so] logic can be happily tossed out the window. This describes socialists. They will ignore logic and "common sense." They will ignore REALITY. Because THEY are religious zealots... THEIR God... is the STATE.
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.
Hey Bill, go fuck yourself.
Thunderbird: Hey Bill, go fuck yourself. Nothing like proving his point.
It used to be the leftists that had bumper-stickers that said things like "Question Authority.' Today they follow slogans from 1984: War is peace. They blindly LOVE Big Brother. They believe competition, pride & profiting from ones labor, are evil things to be banished. Stephen King observed, "The beauty of religion mania is that it has the power to explain everything... [so] logic can be happily tossed out the window. This describes socialists. They will ignore logic and "common sense." They will ignore REALITY. Because THEY are religious zealots... THEIR God... is the STATE.
that's word, weed hopper. Don't be looking for your masters, cause they're trying to save their own.... in order to ask csars what to do. that's the problem. Another complexity interface to work thru. The messages aren't getting thru. On the periphery of Empire where they realy count now. London could get ugly. You're on you're own....;}
spoken like a true reaganaut. you'll get first dibs in helll.....;} in order to ask csars what to do. that's the problem. Another complexity interface to work thru. The messages aren't getting thru. On the periphery of Empire where they realy count now. London could get ugly. You're on you're own....;}
Where's Giuliani and Netanyahu. What's Poppy doin right now. Who's in PEOC tonite. Brent Scowcroft....find these people...and warren buffett...;} Military Drills tomorrow? Israeli Holidays? Rookies to replace Vet commanders and agencies? Just askin....can't be too careful....8D
you'll get first dibs in helll.....;} in order to ask csars what to do. that's the problem. Another complexity interface to work thru. The messages aren't getting thru. On the periphery of Empire where they realy count now. London could get ugly. You're on you're own....;} Ummmmmmmmmm.... Ok. Seriously.... PUT.... DOWN.... THE... BONG...
It used to be the leftists that had bumper-stickers that said things like "Question Authority.' Today they follow slogans from 1984: War is peace. They blindly LOVE Big Brother. They believe competition, pride & profiting from ones labor, are evil things to be banished. Stephen King observed, "The beauty of religion mania is that it has the power to explain everything... [so] logic can be happily tossed out the window. This describes socialists. They will ignore logic and "common sense." They will ignore REALITY. Because THEY are religious zealots... THEIR God... is the STATE.
Typical comment from someone with the IQ of a turnip.
“America is at that awkward stage; it's too late to work within the system, but too early to shoot the bastards.”---Claire Wolfe UP YOUR MEDS!!!!! ;} you're the only one not on drugs!!!! There's so much estrogen in America's waterways the fish are all turning female....LMFAO How's your Plunge Protection Team doin'. They still sending instructions? Heard from'em lately? Subsidy checks still arriving?
Also, CE, You need to keep in mind that the medication you take may also negatively affect your body's ability to cope with higher temperatures: Medicines many older people take also may make them more vulnerable to the heat. These include diuretics for high blood pressure, which increase urination - and make it more important to drink plenty of water. Some types of drugs can interfere with sweating and raise body temperature, including some medicines for insomnia, nausea, prostate conditions, Parkinson's disease and even Benadryl. Many list "dry mouth" as a side effect - a tip-off to drink more water. Just because the heat didn't used to bother you when you were young doesn't mean you should ignore your body's warning signs when it's getting more and more dehydrated in hot temperatures. 8D
BUWAHAHAHAHAHAHA which greenspan started. Sweet baby hesus...the criminal prescribes the anit dote.... insane...8D
You can see the problem on cnbs and the NYSE floor. The gnomes are standing on the floor like they have no problems and are in control. The problem is that they can't hold more paper. Someone was up ALL night putting their 'Assignments' together.... LMFAO The Center cannot hold...
How's that War for the Jews comin'. You guys gonna wrap that thing up anytime soon? Cause we need the $$$...8D
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
OF course he did: Reagan Greenspand Commodities Trading Act 1982....LMFAO NEWS FLASH: Predator drone seen circling S&P Headquarters....
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.
Or Spain before the defeat of the Armada...
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" I lurk to see if someone other than Myst or Pookie posts anything...
One fifth of Congress is over there on Summer break. I believe they all got a deal they couldn't turn down. It's okay, the Bible thumpers here will make excuses.
Like Reagan going to Japan...;}
No, shitbird, you're right. evil is not original. As history will repeat for the fuckups that will not learn. coming around faster and tighter.... no more bubbles for Mr Bubbles to blow.... " Intervention may seem to work for a while but when it stops working and all the shorts are pushed out, a vacuum exists below. The buyer of last resort then becomes the buyer of only resort, or as we saw with Fannie Mae and many equities in 2008, after the Fed drove out the shorts, there were essentially no bids at all. Flashback August 18, 2008: Fannie, Freddie Bailout To Wipe Out Equity Hold
ReCap: JessesCrossroads: " And this is why the outlook for the US is so negative. Governance has failed, the system has been thoroughly corrupted or co-opted, and the planning and discussions cannot gain traction. Some have recently referred to Obama's clarity gap because it is so unclear what he stands for, what principles he is willing to fight for. The politicians of both parties, the media, and the business leadership are caught in a credibility trap in which the root causes cannot even be discussed, must less addressed, because they have all been involved in or benefited from a massive injustice in the financial frauds. They are complicit, and cannot act openly and honestly for fear of losing control of the debate, and of subsequent discovery.
We've got to keep Big Pharma happy.
Again?!
oftwominds: " Solution 1: Central State fiscal stimulus: failure. Solution 2: central bank-induced currency devaluation: failure. Solution 3: central bank-induced inflation: failure. Every textbook Keynesian solution to escape the black hole of liquidity entrapment has been tried on a grand scale, and failed on an even grander scale. The solution is simple: renounce/write down all impaired debt, wipe out the "too big to fail" banks, and restrict the reach and political power of the remaining banks and Wall Street. Until we're willing to do that, then the liquidity trap will remain a black hole that the economy cannot possibly escape.
And they have the nerve to say he's not pro Israel!
The Chairsatan opens his Carnival Show at 2:15 E. Needs a better speech than Obama, or the results will be worse than Obama's. They're shooting starit heroin into the markets now. And like every addict, the doses need to be higher every time... Epic Fail in no more than 5 days....
The Greatest Ponzi in World History was revealed yesterday. We're now in real time break down. Reichstag fires and wars are all they have left.
From the stupid stuff you post, I can see how you would think that. Maybe you should take up basket-weaving, since your inability to acknowledge reality is- how shall we say- "limited..." You're a friggin' LOON.
It used to be the leftists that had bumper-stickers that said things like "Question Authority.' Today they follow slogans from 1984: War is peace. They blindly LOVE Big Brother. They believe competition, pride & profiting from ones labor, are evil things to be banished. Stephen King observed, "The beauty of religion mania is that it has the power to explain everything... [so] logic can be happily tossed out the window. This describes socialists. They will ignore logic and "common sense." They will ignore REALITY. Because THEY are religious zealots... THEIR God... is the STATE.
Oligarchy Eric. FEDERAL RESERVE....can you even type that? Why can they expand their Balance Sheet to infinity. But Sovereigns have to rape their citizens? LMFAO
;}
Oligarchy Eric. August 10, 2011 Jim Rogers There Are Many Ways To Default There are many ways to default. You can put on exchange controls. There’s lots of way to default and America will certainly default. Whether there’s ever a day where America says we won’t pay our bills, probably not. They’re more likely to give you worthless money. Jump, You Fuckers...;}
You're not worthy of consideration. Frankly, you're just too indoctrinated, to hold a conversation. This, combined with your apparent proclivities to use mind-altering drugs, makes conversations with you a strictly one-way street. Don't bother writing to me any more. I'll not waste my time on a socialist scum like you.
It used to be the leftists that had bumper-stickers that said things like "Question Authority.' Today they follow slogans from 1984: War is peace. They blindly LOVE Big Brother. They believe competition, pride & profiting from ones labor, are evil things to be banished. Stephen King observed, "The beauty of religion mania is that it has the power to explain everything... [so] logic can be happily tossed out the window. This describes socialists. They will ignore logic and "common sense." They will ignore REALITY. Because THEY are religious zealots... THEIR God... is the STATE.
BUWAHAHAHAHAHAHA....8D Then don't....Oligarch... Like you can now ignore us.... SocGen going belly up.... Can you even type HFT? LMFAO " Without going into detail at this time, we think we know one cause of the drop in liquidity. A certain HFT algorithm that we affectionately refer to as The Disruptor, will sell (or buy) enough contracts to cause a market disruption. At the same exact time, this algo softens up the market in ETFs such as SPY, IWM, QQQ, DIA and other market index symbols and options on these symbols. When the disruptor strikes, many professional arbitrageurs who had placed their bids and offers in the emini suddenly find themselves long or short, and when they go to hedge with ETFs or options, find that market soft and sloppy and get poor fills. Naturally, many of these arbitrageurs realize the strategy no longer works, so they no longer post their bids and offers in the emini. Other HFT algos teach the same lesson -- bids or offers resting in the book will only become liabilities to those who can't compete on speed. In summary, HFT algos reduce the value of resting orders and increase the value of how fast orders can be placed and cancelled. This results in the illusion of liquidity. We can't understand why this is allowed to continue, because at the core, it is pure manipulation. MANIPULATION is Capitalism? Who'd a thunk....;}
Also: In summary, HFT algos reduce the value of resting orders and increase the value of how fast orders can be placed and cancelled. This results in the illusion of liquidity. We can't understand why this is allowed to continue, because at the core, it is pure manipulation. And, more importantly, it creates a vacuum.... Like breaking thru Resistance, say, BAC @ 6.50...there's nothing below. Algos/HFT's have have their plugs pulled or they'll take it to ZERO.
Party like it's 1775....8D
Remember the Good Ole Days when All Soc Gen had to worry about was Rogue Traders? LMFAO. Bring 'em Down....Love in an Elevator!!!
It takes money.
#38. To: mcgowanjm, Thunderbird (#37)
Yeah Shitbird weighs in.
#39. To: Bill D Berger (#38)
Thunderbird
#40. To: mcgowanjm (#35)
Wrong's a Religion for you, eh CE?
Freedom is slavery.
Ignorance is strength.
#41. To: mcgowanjm (#37)
#42. To: Bill D Berger (#38)
#43. To: Thunderbird, Bill D Berger (#42)
Bill D Berger: Don't tell me yukon has himself another screen name? Guess it's obvious by the juvenile posting style.
Freedom is slavery.
Ignorance is strength.
#44. To: Thunderbird (#41)
focus
#45. To: Capitalist Eric (#43)
right all along
#46. To: Bill D Berger, All (#38)
#47. To: mcgowanjm (#45)
spoken like a true reaganaut.
Freedom is slavery.
Ignorance is strength.
#48. To: Thunderbird (#42)
Hey Bill, go fuck yourself.
#49. To: Capitalist Eric (#47)
PUT.... DOWN.... THE... BONG...
#50. To: Capitalist Eric, All (#47)
#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.
#52. To: All (#51)
#53. To: All (#52)
#54. To: mcgowanjm (#51)
which greenspan started.
#55. To: Thunderbird (#54)
Greenspan didn't invent the bubble economy
#56. To: mcgowanjm (#55)
OF course he did:
#57. To: Thunderbird (#56)
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#58. To: mcgowanjm (#53)
(Edited)
How's that War for the Jews comin'.
#59. To: mininggold (#58)
#60. To: Thunderbird (#56)
Greenspan didn't 'invent' anything McGoo
#61. To: All (#60)
#62. To: mcgowanjm (#59)
Like Reagan going to Japan...;}
#63. To: mininggold (#62)
We've got to keep Big Pharma happy.
#64. To: mininggold, socalv8 (#63)
#65. To: socalv8 (#63)
Again?!
#66. To: All (#64)
#67. To: mininggold (#65)
#68. To: mcgowanjm (#49)
you're the only one not on drugs!!!!
Freedom is slavery.
Ignorance is strength.
#69. To: Capitalist Eric (#68)
#70. To: mininggold (#62)
We've got to keep Big Pharma happy.
#71. To: Capitalist Eric, All (#68)
#72. To: mcgowanjm (#71)
Jump, You Fuckers...;}
Freedom is slavery.
Ignorance is strength.
#73. To: Capitalist Eric, All (#72)
(Edited)
You're not worthy of consideration.
#74. To: All (#73)
#75. To: All (#74)
#76. To: All (#75)
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