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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: carranza2 who wrote (77427)	8/8/2011 12:34:33 PM
From: Hawkmoon	Read Replies (2) \| Respond to of 218649

Let's not give S&P too much credit for their downgrade call. It was a political move, given that they made a $2 Trillion dollar error in their calculations, but refused to reconsider their call. That suggests that the political motive and it doesn't do much for their credibility as financial ratings analysts. More likely, however, it was a deliberate financial move that provides ammunition to the CDS and short sellers out there. I'm not saying that there wasn't justification for a downgrade, but the timing stinks to high heaven since it occurred RIGHT AFTER the congress got their heads out of their 4th points of contact and passed the rise in the debt ceiling, as well as budget cuts. But the TP politicians just got handed some serious ammunition to support their cause. And Obama has just become the first, and only, President to preside over a cut in the AAA status of US sovereign debt. This will likely become a very hot political issue in the next election. But the reality is that there is more chance of a European default than a US one. Italy is going to be hard to save and that may spell the end of the EU. It does, however, put HUGE pressure on municipal bonds since they can't have a higher rating than that of the US government. Hawk