S&P reported to downgrade USA AAA credit rating to AA+ over the weekend

The AA+ rating is going to be the albatross around the neck of the anointed one - good for him. He caused the problem with his rediculous spending and karma will catch up to him in 2012 - not soon enough for me.
 
Who could have expected elsewise nowadays. Gasperino says his sources report that Democrats on Capitol Hill are preparing to call for an investigation of S&P. Moody's did not want any of that.
 
The sad thing is...

It is embarrassing.

All the goober Talking Heads are yakking that there is no place for bond holders to go. They are not going to buy EuroTrash bonds. There is no safe bond zone. So AA+ doesn’t look too bad.

What the Talking Head Goobers are not seeing is that we offer the lowest interest I have seen in my lifetime. Maybe in any of our lifetimes. What I am saying is that we are not at sustainable rates. Folks will use this to demand rates at least to the normal. All they have to do is slow down purchases. Here come the Debt Vigilantes.
 
I seriously think that the S&P did what they had to do and that is to TELL THE TRUTH!
THANKS S&P WE NEEDED THAT!
:cool:​
 
bmneveu said:
So could the G fund be a safe And profitable home for our money soon? I'll definitely be keeping up on that! :)
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We don't have a safe harbor.

The 'G Fund' can be securitized by the Treasury. Also, Congress sets the interest rate.

I would recommend letting the market adjust to this. Then, most likely the market will factor in new more business friendly leadership. That means C/S. But the 'G' might be the place to be till we can discount the 'Black Swan Event Administration'. Yowser, I mean literally the day of the debt ceiling deal our President starts talking about taxing the rich and jet owners and stuff…

Mr. President, please concentrate your energies away from jobs and the economy. Maybe to baking healthy cookies or something. Please look away.:sick:
 
By the way, your credit rating decreases if you have too much debt and are piling more on.

Very simple. The gubmint does not control the subjective process credit rating entities use. All the noise about S&P picking now to downgrade is stupid. All the big rating entities have put us on watch. We are an easy target. Bloating our overall debt by 10% over the past two years and by 7% onward into the future. Every year. S&P is attempting to be the first to make the move so they look the most independent and the smartest. Everyone else gave us a couple of months. S&P figured to get the jump on them.
 
clester said:
It's interesting that one of the main concerns was the political mess in the U S caused by the TEA party taking us to the edge of default.

Nobody really knows what to expect next week. I'm in F fund but nervous. Maybe everyone will sell everything like they did last week. It could get ugly in the short term. I hope not though.
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Clester,

You are right to be worried about 'F Fund' holdings. Also, we should be watching the 'G Fund' for interest rate increases. They are two sides of the same coin.

I just watched (last night on CNN - which owns this discussion [to me that is surprising]) an interview with the S&P sovereign debt executive that promoted a balanced approach to major debt ratio reduction. This may surprise you - but, I agree. Just show me big cuts first. I have seen the 'drastic cuts' that have been demagogued in the past - and not felt a thing. I have to feel it, Clester. I have to feel it.

Once I see an ACTUAL cut in spending on the ‘Monthly Treasury Statement’ I will start looking at revenue enhancement.

Starting with getting more freeloaders paying into the system and streamlining out loopholes.

Then I will gladly accept the Clinton era tax code – to include the marriage penalty.

For a while. And, only as long as spending constantly decreases in real terms.
 
clester said:
It's interesting that one of the main concerns was the political mess in the U S caused by the TEA party taking us to the edge of default.

Nobody really knows what to expect next week. I'm in F fund but nervous. Maybe everyone will sell everything like they did last week. It could get ugly in the short term. I hope not though.
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Who seriously believes that the heated discussions about slowing our debt accummulation is a "main concern"..... unless in the context that one group is so demogagic as to wail about any reduction in the rate of growth and that signals hopelessness?
 
Now that is out of the way. The NON-PARTISAN Question is: Is this already priced into the Market...is this why we already lost our shirt sleeves...or will the market get the rest of the shirt next week.

Tune in next week, same time same channel.
 
Thats funny, seems like it was the D-Party that was in power when the gov ran the Debt up 4 trillion. And when the housing market melted down, wasnt that Barney Fwank and Chris Dodd that told everyone that everything was alright until it all blew up, they are D-party guys too, or Teaparty?
 
It's interesting that one of the main concerns was the political mess in the U S caused by the TEA party taking us to the edge of default.

Nobody really knows what to expect next week. I'm in F fund but nervous. Maybe everyone will sell everything like they did last week. It could get ugly in the short term. I hope not though.
 
I wouldn't run towards anything unless it's wearing a skirt... I'd take a wait and see attitude giving bonds a few days to settle on the predominant direction.
 
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