Markets opening soon here
ping
As predicted, the debt ceiling deal was not only NOT enough to assuage economic fears, it actually exacerbated them, triggering a flight from the Dow, and creating a decisive opportunity for ratings agency S&P to cut the once perfect U.S. credit rating from AAA to AA+.
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and, this adds more pressure on Italy Greece and Portugal.
maybe enough to make them collapse.
...which in turn, will drag us down futher.
ALL of which might have been avoided, if Boehner had held out for the tiny MINIMUM of 4 trillion in cuts,
that the S&P said were necessary, BEFORE THE FINAL VOTE.
Boehner and McConnell were willing accomplices in this.
they did not HAVE to agree. they could have held the line,
for at least enough cuts to avoid the downgrade.
instead, they caved to Obama.
DNC Chairman Debbie Wasserman Schultz:‘We own the economy’ - June 15, 2011
We're going to hang you, your commie boss and all the dims with this Ms. Wasserman Schultz!
FUBO GTFO 2012 !
Glasses half full: first step to recovery is to accept that you have a problem.
Prior too the debt ceiling debate and the downgrade, it was business a usual.
Here’s hoping that it is painful enough to get the required attention and action, but not too painful to make life miserable for us.
I’ve been told that many funds have by-laws, which require AAA rated bonds be held (think pension funds, etc.). These funds will dump treasury bonds...but they also have by-laws which prevent them from holding cash...so I imagine they will purchase stocks, or debt from the 17 remaining AAA nations.
I can see a roller coaster, as this is all happening. The amount of money in ‘the markets’ will stay the same...but alot of it may go to foreign markets in the morning.
Blaming S&P is a non sequitor. They are simply stating their opinion on the creditworthiness of US debt. If someone doesn’t like it, then go issue your own opinion on the debt.
One of the main problems in the mortgage securities meltdown was that the people buying the securities didn’t bother to look and see what they were buying, because S&P said they were great.
It’s like going to see a Hollywood movie just because Roger Ebert said it was great. After buying a ticket and seeing that it sucks, there is no point in blaming Roger Ebert. You could have looked into what the movie was about and checked other reviews beforehand and perhaps noticed that it was starring Ben Affleck or whomever.
The government should never have started down the road of giving the imprimatur of approval to the rating agencies and bringing them under regulation. It’s like making Roger Ebert a “nationally recognized movie rating organization” and trying to regulate him.