This page has been archived and commenting is disabled.
Standard & Poor’s Hacks Downgrade…America!
And now we learn that Standard & Poor’s, the same unprincipled hacks whose grossly inflated triple-A ratings made America’s real estate boom and still-busting bust possible, has downgraded the USA itself. Or to be more precise, their long-term outlook fell from “stable” to “negative” – a Kremlinesque way of hinting that an actual downgrade from AAA is possible if the U.S. doesn’t get its fiscal house in order (as though that were even possible, given that the Federal debt is $14.3 trillion and climbing, and that the economy is on a permanent respirator). And whose payroll is S&P on, we wonder? Until yesterday, we thought they were so busy putting the screws to Europe’s financial cripples that there wasn’t time or manpower enough to pore over America’s books. Now, it would appear, they’ve found actual fiscal problems to worry about even if the real worries eupted like Vesuvius three years ago. And another thing: Whenever they slam the PIIGS by taking their credit ratings down a peg or two, it is usually to buoy the U.S. dollar that day so that Little Timmy Geithner’s pep talk at some Rotary Club luncheon gets good press. Whatever the reason for yesterday’s downgrade – about as shocking to millions of Americans as the revelation that Liberace was gay – it was fun to watch the bond market react.
Or rather, to not react. T-Bond futures ended the day down a few measly ticks, although the obligatory swoon on the “news” allowed predators who live off such volatility to shake down the rubes. The June contract plummeted more than a point-and-a-quarter on the opening bar, then spent the rest of the day making fools of those who had bailed out at the lows. Nice to see the bonds acting conflicted for a change. On the one hand, USA Inc. took one small step toward its inevitable bankruptcy. On the other, the weak economic outlook prevented bonds from sinking on inversely rising yields. Doubtless, those who bought did so with a quick-exit strategy in mind.
Gold, Silver Swoon Too
The quasi-criminal shakedown wasn’t limited to the Bond pits either. Gold and Silver both took a flying dive for no particular reason – other, perhaps, than a fleeting lack of demand as traders tried to figure out what it all meant. The answer to that question being “nothing,” bullion quotes soon recovered even more sharply than Treasury debt when it was realized that Standard & Poor’s tasteless publicity stunt had laid an egg. For our part, we held an existing position in Silver Wheaton over the four hours that it took for the hysteria to run its course. Although the stock swung more than $4 yesterday to close down $1, we’re not convinced that silver bulls are out of the woods. Actually, we’d been looking to short silver ETFs on the opening, and although the rally spike on the opening bar missed our offer by pennies, we might be tempted to try again on Tuesday. On the bullish side, June Gold still has a ways to go before it bumps into any Hidden Pivots that look capable of briefly reversing the tide. If you’re interested in our precise targets for Comex Gold (and Silver) but don’t subscribe to Rick’s Picks, get a risk-free seven-day trial.
»
- advertisements -
If a debtor tells a creditor "Sorry, but I cannot make my interest payments unless you lend me some more money.", that means that the debtor is effectively bankrupt. Guess what? Tiny Tim has said that several times.
And S&P is still maintaining a triple-A rating on US debt? If S&P were really honest, they would downgrade US debt to junk immediately.
But, but, but....how are we gonna fund our permawars in Afghan, Iraq and Libya?
Well we are witnessing the decline of an empire - usually doesn't happen without all sorts of fireworks. I just hope none of them make mushroom clouds...
I pitty that fool... shorting PM...
The party has not started yet in AU ... mo QE.. mo QE... they need to keep smoking them rocks...
Whackoman.
http://www.opensecrets.org/pres08/contrib.php?cycle=2008&cid=n00009638
Barack Obama (D) Top ContributorsThis table lists the top donors to this candidate in the 2008 election cycle. The organizations themselves did not donate , rather the money came from the organization's PAC, its individual members or employees or owners, and those individuals' immediate families. Organization totals include subsidiaries and affiliates.
Because of contribution limits, organizations that bundle together many individual contributions are often among the top donors to presidential candidates. These contributions can come from the organization's members or employees (and their families). The organization may support one candidate, or hedge its bets by supporting multiple candidates. Groups with national networks of donors - like EMILY's List and Club for Growth - make for particularly big bundlers.
University of California $1,591,395 Goldman Sachs $994,795 Harvard University $854,747 Microsoft Corp $833,617 Google Inc $803,436 Citigroup Inc $701,290 JPMorgan Chase & Co $695,132 Time Warner $590,084 Sidley Austin LLP $588,598 Stanford University $586,557 National Amusements Inc $551,683 UBS AG $543,219 Wilmerhale Llp $542,618 Skadden, Arps et al $530,839 IBM Corp $528,822 Columbia University $528,302 Morgan Stanley $514,881 General Electric $499,130 US Government $494,820 Latham & Watkins $493,835 Percent of Contributions Coded Coded $284,930,288 (73%) Uncoded $103,353,467 (27%) Total $388,283,755Why (and How) We Use Donors' Employer/Occupation Information
METHODOLOGY
NOTE: All the numbers on this page are for the 2008 election cycle and based on Federal Election Commission data released electronically on Monday, July 13, 2009.
("Help! The numbers don't add up...")
Feel free to distribute or cite this material, but please credit the Center for Responsive Politics. For permission to reprint for commercial uses, such as textbooks, contact the Center.
today's tuesday. How's that working out for your Rick? That's what I want to know.
Rick, most of us here at ZH downgraded America a long long time ago...S&P is just late to the party.
+10 LOL
"consider yourself warned."
"we’d been looking to short silver ETFs on the opening"
silver 43.81, hope his Tuesday short is doing well.
44.18 ROFL
S&P know better then to downgrade...its practically an impossibility...
heres why:
U.S (if ever downgraded) would be obligated to enforce law in order to regain status, there-in lies the rub..if laws were enforced the credit ratings companies would be out of business. hence no chance to return to status
a downgrade is completely IMPOSSIBLE..or M.A.D.
###
plenty of money changed hands in t-bond futures
###
I like to read sucker's comment like this one.
sucker pretends he knows something, kindof conspiracy theory..
well idiot its not that hard to test your theory..
go to 'CME' its place where bond futures trades, and check daily bulletin... its open source.. it shows change in open interest/volume for that day.. then take 5days average volume/interest and compare..
if you're professional player CME sells all bond trading prints, by tick.. so you can check volume/ open interest
for that hour/second/day
i cant wait for see results..
alx
Bingo, better make sure your HFT bot has the fastest processors and internet access around though.
Time to stop paying taxes and turn all paper in something physical and simply let all these snakes eat each other. What say you?
What a fucking douchebag
The question isn't "Who's payroll is S&P on?" It's "Who's payroll is Ackerman on?"
Whackoman: "It's not clear that silver bulls are out of the woods yet."
Huh? Woods? We're in the woods? Better put the bong down and have a look at the LBMA streamer: Silver is currently at US$43.90---yeah, we're in the woods.
Thanks to S&Peanut gallery for stating the obvious. Next they'll tell us that humans are not immortal.
lol! can't you just make out the circus music...?
S&P right on cue
as El Erian muses the requirement for a global realignment
the banksters move to phase two