S&P downgrades U.S. credit rating from AAA to AA+

Discussion in 'Markets & Economies' started by Ouch, Aug 6, 2011.

  1. Mick

    Mick Member

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    This could be the begnning of the end for our infamous world reserve currency.

    Expect volatility!
     
  2. perthsilver

    perthsilver Member Silver Stacker

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    Since pension funds and govt agencies can only invest in AAA rated investments, does this mean a flood out of US treasuries now or do all ratings agencies have to downgrade the US first?
     
  3. euphoria

    euphoria New Member

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    http://www.zerohedge.com/news/joint-statement-fed-fdic-ncua-occ

     
  4. Ag-ness

    Ag-ness Member

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  5. thatguy

    thatguy Active Member

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    Crap toooooooooooo soon! Can't it wait a year or two! I'm gonna visit the bullion shop this weekend fore sure
     
  6. euphoria

    euphoria New Member

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    It IS a downgrade by S&P. The Us treasury and Fed have just said that for accounting and reserve capital requirements, US treasuries and securities etc are still classed as AAA for this purpose. Basically saying the rules do not apply in this case and a middle finger to S&P.
     
  7. Peter

    Peter Well-Known Member

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    Amazed this happened.
    Would have thought S&P boss's would have been offered all expenses paid trip to Guantanamo Bay to do this.
     
  8. Ag-ness

    Ag-ness Member

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    Ah, so they have been downgraded, but the treasury and fed have said downgraded schmowngraded, hurray for America?
     
  9. euphoria

    euphoria New Member

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    correct.
     
  10. Diablo21

    Diablo21 Member

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    Hurray for America indeed.

    I, unfortunately, went to high school in America and every time my history teacher would say something about how great the USA is, he would do this stupid fist pump move and say "USA, USA, USA..." and all the hick kids would be so happy while I rolled my eyes.

    [​IMG]
     
  11. Old Codger

    Old Codger Active Member Silver Stacker

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    perthsilver,


    "Since pension funds and govt agencies can only invest in AAA rated investments, does this mean a flood out of US treasuries now or do all ratings agencies have to downgrade the US first?"


    I wonder if the USG will be forced to change that AAA mandated investment thing to cover this situation. Just pass an amendment changing it to AA+.

    Problem solved!


    OC
     
  12. rbaggio

    rbaggio Active Member Silver Stacker

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    In response to the S&P downgrade, what did Warren Buffet have to say?

    [​IMG]

    Berkshire Hathaway have US$47 billion in cash and cash-equivalents (T-Bills etc.). Skin in the game, much?

    lol
     
  13. Mi lao shu

    Mi lao shu Member

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    I think that Biggest players get tip and they swap there US holdings already, S&P is no less crooked than USA government, PM stackers r buying now, in Monday AG, PT, PD ,going down,holders of AU will not sell it , they will wait, only those who must will sell it, other than biggest players and PM stackers will try to buy but quantity will be limited , so i expect sell of-and buy on gold in Monday, gold will hold ground and rise .
     
  14. Comper100

    Comper100 Member

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    I don't see how the US could even have an AA rating with that much bad debt. I'm sure I wouldn't get an AAA rating with 14 trillion on my credit card! An E - at best is say. :D
     
  15. thatguy

    thatguy Active Member

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    Anyone think it will be BAU on Monday? My bet is carnage, but i'm no economist
     
  16. rbaggio

    rbaggio Active Member Silver Stacker

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    John aka stellaconcepts needs to do a video on how to short 30-year US treasury bonds.
     
  17. projack

    projack Well-Known Member Silver Stacker

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    What did you expect?
    Did you expect Buffet to say his 47 billion investment is not as valuable as previously thought?
     
  18. Roswell Crash Survivor

    Roswell Crash Survivor Well-Known Member Silver Stacker

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    Lets not be guilty of selective misquotation here.

    "I don't get it," Buffett told FBN late Friday night. In fact, Buffett reaffirmed his belief in the quality of the United States' credit telling FBN, "In Omaha, the U.S. is still triple A. In fact, if there were a quadruple-A rating, I'd give the U.S. that."

    "We just filed our 10Q and we have $47 billion in cash and cash equivalents. Well over $40 billion of it is in short end T-bills. (Tonight's S&P downgrade) doesn't tempt me to sell. We'll stay right there."

    "Think about it. The U.S., to my knowledge owes no money in currency other than the U.S. dollar, which it can print at will. Now if you're talking about inflation, that's a different question."

    Source: http://www.foxbusiness.com/markets/...sp-downgrade-doesnt-make-sense/#ixzz1UFIgiI2u
     
  19. SilverSanchez

    SilverSanchez Active Member

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    To be honest I dont think it will have the effect you guys are prophesying - S&P had to do something because everyone knows the USD is sh*t if they didnt they would look imcompitent. The market already knew this already, everyone on this thread thinks the USD should be downgraded to 'junkbonds'....

    It will effect financial markets and currency markets but i dont think its armageddon yet.
     
  20. projack

    projack Well-Known Member Silver Stacker

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    Buffet is smart siting on 47 billion cash when the market is in correction mode.
    Like in National Geographic documentaries when vultures and hyenas following sick or wounded animals.
     

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