S&P downgrades U.S. credit rating from AAA to AA+
- Thread starter Ouch
- Start date
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?
Ag-ness
Member
So which is it, downgraded or not downgraded? This dinky mainstream news article thinks it's downgraded:
http://finance.ninemsn.com.au/newsbusiness/aap/8282144/us-credit-rating-cut-for-first-in-history
It matters little. TALK about downgrading, or a report that some bs stopped a downgrade is usually enough.
I'd fly to metals and commodities if I had my money in anything else.
http://finance.ninemsn.com.au/newsbusiness/aap/8282144/us-credit-rating-cut-for-first-in-history
It matters little. TALK about downgrading, or a report that some bs stopped a downgrade is usually enough.
I'd fly to metals and commodities if I had my money in anything else.
Ag-ness said:
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.
Diablo21
Member
Ag-ness said:
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.
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
"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
Mi lao shu
Member
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 .
rbaggio said:
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
SilverSanchez
Active Member
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.
It will effect financial markets and currency markets but i dont think its armageddon yet.