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[OTHERS] NO Standard & Poor's MORONS

NO Standard & Poor’s MORONS

After going thru plenty of news & views, it seems that there are consensus that the United States' debt rating is still AAA despite Standard & Poor's downgrade.

If at all there are doubts.. it would seems to point towards the downgrading of the market’s opinion on Standars & Poor’s and I AGREE 100%. Standard & Poor’s has a atrocious track record of incompetence in the housing bubble years, this was the same bunch of morons who gave Lehman Bros. AAA rating just before its collapse & and the accounting scandals of the stock bubble years.

The decision by Standard & Poor's to downgrade U.S. government debt from AAA to AA reflects its own failings as a credit rating agency. The Treasury Department revealed that Standard &Poor's decision was initially based on a $2 trillion error in accounting. However, despite after this enormous error was corrected, Standard &Poor’s went ahead with the downgrade. This suggests that S&P had made the decision to downgrade independent of the evidence. It says nothing about the creditworthiness of the U.S. government.

Since U.S. debt is payable in dollars & the U.S. government controls the printing of dollars, it is not clear what a downgrade could even mean. As long as the U.S. government knows how to print dollars, it will always be able to make the interest and principal payments on its debt, wouldn’t it ?

With investors willing to hold trillions of dollars in long-term U.S. debt at interest rates well below 3.0%, the financial markets certainly do not seem to share Standard & Poor's concern. It is also noteworthy that interest rates fell in the wake of Standard & Poor's decision, providing further evidence that the markets do not take Standard & Poor's assessment seriously.

This makes one wonder if there is something brewed prior to the announcement being made giving “certain people” a leg up on the outcome of the downgrade, those who tends to gain from such an announcement, say bond dealers, or gold dealers, perhaps ?

Few trillion dollars wiped out of the market becoz of NO STANDARD & POOR’S MORONS !!
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I think if S&P really that bad in asessing the US debt, the US investor wont react this bad. There are fundamentals lying beneath that lead S&P to downgrade the US debt. (May refer some of it in yahoo finance, there a lot in other sites)

The simple logic; what happend when someone keep on borrowing (even have to increase the limit) money while at the same time the person's income (real income; to include the inflation + decreasing value of the dollar) is decreasing.
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why should anybody care abt S&P downgrading US?? just like why should anybody care abt Greece downgrade? becos ppls has stake in s&p and it affects the global mkt via wallst.
Greece is too insignificant so nobody voice out. nobody question s&p.
the major issue here is denial. as wallst and global mkt melt together. as long as everybody is still in denial, the mkt would keep dropping. so we can look forward to another 10% drop in global equities soon.
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It will further go plummet if the U.S din come out with any appropriate plan... S&P downgrade is just to be cautious and to alert the investor.. Nothing more than that.. and that makes everyone panic..
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