For risk-based capital purposes, the risk weights for Treasury securities and other securities issued or guaranteed by the U.S. government, government agencies, and government-sponsored entities will not change. The treatment of Treasury securities and other securities issued or guaranteed by the U.S. government, government agencies, and government-sponsored entities under other federal banking agency regulations, including, for example, the Federal Reserve Board’s Regulation W, will also be unaffected.
-Clam
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Haha. Clam out. The new C-crest out.
He could have written the entire thing using 5 letters and gotten his point across:
S&P:
FU
-C
Meaning: Please hold collateral T-notes at the same value as they were at the market close on Friday.
This is all psychological. As though people need to be told that a nation carry that much present and future liability isn’t problematic.
However it has one important political side to this. The GOP won with this announcement and won huge as President Odumbo will be carrying the bag for the rating cut.
He’s finished.
Lord willin’ and the creeks don’t rise…
If o is finished, then that’s bullish for stocks, no?
I’m not convinced that it’s a GOP victory, the media spin machine like krugman and co is already spinning this as the “tea party” being behind this. Will Obama still take the blame? I mean according to the 2006 version of him, it’s his fault and it shows a lack of leadership that we even talked about debt ceiling, and we pay too much money in interest and need to be more fiscally responsible… but then he gave that speech in 2011 and is using his every move as a political one saying the exact opposite and the democrats have praised him both times even though he said the exact opposite. LOL, so wait… people voted for Obama based on fiscally conservative platform, and now he’s up for re election as a debt addict spend thrift. The truth is, people don’t care what people say, but instead “how they sound saying it”. Additionally, the US will elect the person that makes the most promises even if it bankrupts the rest of us to pay for them. Let’s raise taxes on 49% of the people to pay the other 51% of the people who add no value to society. hurray for democracy.
LOL, I almost am thankful that the people that get elected are corrupted in a constitutional republic and look out enough for the businesses interests so they can keep businesses doing somewhat well in the US so they don’t pack up and leave like they have been the last decade or so with tax rates #2 in the world. Amazing that the forefathers crafted a system that is still somewhat solvent even after the international bankers were able to corrupt it. Who would have thought back then US would still be such a strong nation.
So does this mean that heavily regulated funds will not be required to reduce exposure come Monday? I am not familiar with Regulation W.
put a fork in em. he’s done. he was never qualified for the job.
Obama will win second term.
If there’s enough fear that the guy running against him will be really cutting things, there’s 1/5th of the nation unemployed or under employed that will vote for him at least.
Being that there is about 45% perma dems and 45% perma republicans typically, that should be more than enough, but just in case, unemployment can keep going higher.
http://www.shadowstats.com/
Ozzie Jay called me this morning (I’m honored, since I’d thought I’d been tossed aside for le Fly), and he says “Obama’s done, right?”
I says, “I dunno, who’s running against him?”
I mean, you can run “Cypher” against Obama an Cypher wins, but when you have to fill in the blank… who are you going to get excited about?
I can tell you this… the base is NOT excited about Mitt Romney, although I think he’d make a fine POTUS. Great manager, brilliant guy, but maybe just a wee bit too stiff and “bureaucracy” smelling.
Might have to get Perry in this or the Fat Man.
_______
all this nonsense about politics and downgrades is so last week. This has become serious now. The Central Bank is going to really start printing. The idea is to flood economy with money, so that it can unload its portfolio. Three governors voted against suicide. I also believe that Oct.1 is going to be hyped as a y2k event. New fiscal year will mean massive defaults of local and state government. When the Central Bank is trying to get out first and last DUCK and cover!