Goldman On What A US Downgrade Will Bring: Spoiler Alert - Nothing Good (And Why It Is Nothing "Like Japan")

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Thu, 07/28/2011 - 15:39 | 1501977 Corn1945
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Do you really think the clown-car ratings agencies will downgrade the US?

They are such a joke at this point.

Thu, 07/28/2011 - 15:45 | 1501991 SheepDog-One
SheepDog-One's picture

Well everything is now a joke. Why take any of it seriously? Buy gold, guns, food.

Thu, 07/28/2011 - 15:53 | 1502008 GIANTKILR
GIANTKILR's picture

Amen! But I am partial to silver!

Thu, 07/28/2011 - 15:55 | 1502009 GIANTKILR
GIANTKILR's picture

Double post! Slow azz, and clunky!

Thu, 07/28/2011 - 15:54 | 1502012 GIANTKILR
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Thu, 07/28/2011 - 16:01 | 1502027 Ahmeexnal
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Here's a more accurate outlook at how things will pan out:

Thu, 07/28/2011 - 15:50 | 1502002 Debtless
Debtless's picture

Run For Your Lives - Zombie Apocalypse Film

Thu, 07/28/2011 - 15:54 | 1502016 caerus
caerus's picture

greatest show on earth...cheers!

Thu, 07/28/2011 - 15:57 | 1502025 wandstrasse
wandstrasse's picture

if one of the rating agencies does decide to downgrade the US sovereign rating, we see three main direct effects:

1. We gave the order and we frontrun everything

2. Some more nice, relaxed trading sessions

3. Adequate bonuses

Thu, 07/28/2011 - 16:02 | 1502035 slewie the pi-rat
slewie the pi-rat's picture


i was shovel-ready when i read this: 

What happens to the significant portion of Treasury and agency securities held by foreign investors is a more complex question given a diversity of mandates – a few of these might rely on ratings – versus the deeper liquidity of the US government securities compared with any alternative investment, and the fact that a good deal of foreign holdings are the byproduct of the buildup of reserves in growth economies, particularly in Asia, that are generating large current account surpluses.

paper ponzi palooza: a good deal of foreign holdings are the byproduct of the buildup of reserves in growth economies, particularly in Asia, that are generating large current account surpluses.

earth to hazMat:  deeper liquidity is subject to, ah,..., pricing adjusments...

Thu, 07/28/2011 - 16:06 | 1502056 Cult of Criminality
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Ratings?   We don`t need no stinkin ratings

We do what we want, when we want, with complete and total impunity.

Thu, 07/28/2011 - 16:14 | 1502105 LauraB
LauraB's picture

Just found this update in a search: 26 House Republicans Publicly Oppose Boehner Plan:

Thu, 07/28/2011 - 16:34 | 1502196 campag
campag's picture

on a very simple theme ... debt is the problem and in full debate . the expansion of debt is proving difficult for government .does this mean that fiat currency will gain in strength and p.metals+ commodities weaken as unlimited expansion of money supply is being opposed. Is austerity facing the USA - no more expensive wars/ NASA space programs. Austerity cannot be good for metals etc.

Or will the printing of money commence again soon and what we are currently experiencing is just a small pause to hyperinfation? 

Shoot away   

Thu, 07/28/2011 - 17:16 | 1502327 slewie the pi-rat
slewie the pi-rat's picture




Thu, 07/28/2011 - 17:01 | 1502289 alangreedspank
alangreedspank's picture


Heh, fun to see all the politicians getting angry at the rating agencies but when these same agencies were rating the CDOs AAA they loved them.


Thu, 07/28/2011 - 17:30 | 1502362 TSA Thug
TSA Thug's picture

That's some real tangible good will from the boys and girls over at Goldman.

Thank you for the teaser. Why not try their retail service people?

Goldman delivers!


--You WILL Obey!

Thu, 07/28/2011 - 17:34 | 1502375 Greyzone
Greyzone's picture

No one wants to discuss the real worst case scenario. That's when America's cities burn, like after an NBA championship, but this time nationwide with a lot of anger thrown in as combustible fuel. It may not happen but it could, and that's what has the SOBs at the top really scared.

Thu, 07/28/2011 - 17:44 | 1502392 Big Ben
Big Ben's picture

At the moment people seem to be perfectly happy to pour money into near-zero yielding Treasuries (for reasons that I totally cannot fathom). My suspicion is that a few missed interest payments wouldn't really do much to change this psychology. And in any case, Tiny Tim seems to be signaling that the administration is not planning to skip any interest payments if a debt-limit deal is not reached. But he won't come out and say this directly because this would undermine the administration's scaremongering. So the administration must be planning to cut SS, or Medicare, or lay off workers, etc., but it doesn't want to admit this because it would automatically incur the wrath of the voters whose payments will be cut.

Thu, 07/28/2011 - 20:09 | 1502794 MGA_1
MGA_1's picture

Gold  Amigos & Amigas !

Thu, 07/28/2011 - 20:33 | 1502844 Iam_Silverman
Iam_Silverman's picture

Plata y plomo!

On a long enough timeline, all ratings sink to Zero.....

Thu, 07/28/2011 - 23:34 | 1503216 natty
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Wed, 09/14/2011 - 03:53 | 1667139 chinawholesaler
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