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

Tyler Durden's picture

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Corn1945's picture


Do you really think the clown-car ratings agencies will downgrade the US?

They are such a joke at this point.

SheepDog-One's picture

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

Debtless's picture

Run For Your Lives - Zombie Apocalypse Film

caerus's picture

greatest show on earth...cheers!

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

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...

Cult of Criminality's picture

Ratings?   We don`t need no stinkin ratings

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

LauraB's picture

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

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   

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.


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!

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.

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.

MGA_1's picture

Gold  Amigos & Amigas !

Iam_Silverman's picture

Plata y plomo!

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

natty's picture

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chinawholesaler's picture

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