There is a ton of stuff being written on the S&P downgrade of the United States of America. Please read Dr. Fly’s cogent analysis for the truth of the matter. But I’ll give you one better.
Thursday’s action, down 500 points? A day before the Downgrade? Coincidence? Are you kidding me? Whomever needed to know about the downgrade knew. I want the phone record of every call into and out of McGraw-Hill for the entire week and the personal cell phone records of anyone privy to the information. This could take the cake for the biggest insider trading scandal since Ivan Boesky except a trillion times larger.
Is the downgrade all built in? With Amateur Hour all around? Mostly, yes–especially in front of the Bernanke comments this week. Sure, government is broken. But the U.S.A. will honor its debts–even if they are paid in massively devalued dollars as a credit rating is about the likelihood of payback.
they most likely avoided calls but were eating lunch together at a hamptons golf & country club
Great commentary
Communicating the downgrade was probably all done in code, like “I live in a 3,000 sq. ft. house, but will be selling it for something smaller”.
you are just kidding right? you do not get it! this is the END! dollar is no more! usa is n o more. new word order from now on! yuan + ruble! yo!
Shut up. The dollar is pawning other currencies as of late.
Agreed. The DXY has been a bastion of stability as of late, albeit at the low-end of the range…My point is hypothetical…
vad: whatis-theplan.org
the US may be F’d up. But since when in the hell to we EVER believe commies.
Give me a fuckin’ break. All political systems suck. But if you had the right to choose which one you want, funny hoe everyobe prefers democracy vs toltalitarian/authoritatrian regimes, or even those masquerading as democracy read: Russia.
USA will over come Vad, or Vlad.
Fuck yourself !
Yuan? Are you fucking joking? Have you ever even visited much less lived in China? The amount of fantasy-like number drawing and corruption is so blatant there is no way anyone in the world would ever hold yi kwai qian as a serious investment. When the U.S. is blown out, then so are their factories that spew out products to the U.S. and Europe. It won’t matter if it’s Made in China; if there is no market for it, it won’t ever be made.
There are no such thing called coincidence. 2 thumbs up for this post.
The criminals in congress are not by law required to avoid using information they acquire during the course of their dealings. Insider trading is an institutionalized reality on capital hill and basically legal.
The s&p are using a crummy report with a large rounding error to downgrade a government which engages in the same practice in all of their reporting. An irony if there ever was one. Bullshit for bullshit.
You have to admit after the downgrade,just not too many shoes left to drop.
Maybe that is why the massive sell off was so orderly.
^^^^ THIS
Excellent post, Scott. It’s what makes me feel confident this b.s. is “priced in.” The only thing standing between us and a monster, snap back rally is the cavemen of the ECB letting the EU fail.
I’m waiting for the fun at the Congressional hearings when they grill the S&Pee heads about rating garbage sub-prime AAA. It’s gonna be a fun filled Autumn on the Hill.
Berkshire is sitting on 45 Billion +, I fully expect Buffet to go after some targets at these levels:
http://news.yahoo.com/buffett-unit-bids-3-2-billion-transatlantic-145039213.html
Scott,
Can you explain something for me?
If people knew and were frontrunning this, why was capital running for treasuries? Check out the yield curves.
Makes no sense to me why anyone would bid up debt ahead of a downgrade if they knew it was coming.
The economy sucks and there is nothing else to buy. Plus, we’ve been monetizing our debt for a few years now…
The downgrade is political and not based on ability to pay back debt.
BTW–we are Japan. Rates are going lower.
so the US downgrade should bear the same results as Japan?
were eating lunch together at Shinnecock, the a hamptons golf club when we agreed on the downgrade,boys !
Scott, loved following your talk show last summer when it aired for free, when you were bullish on the market and so was I. You must be commended on your absolute spot-on predictions.
Short term everyone wants it, but it’s only at the finish line that the numbers really matter.
If you want that information, make friends with people inside the NSA or work there for awhile, lol.
Scott, you are not the only one that thinks the news leaked. Other agree and they think it is Obama that leaked the news. http://biggovernment.com/cstreet/2011/08/08/when-did-the-president-know-and-who-did-he-tell/