Us is downgraded to aa+

From what I understand, the shifts in the dow over the last 2 days have been a form of market manipulation by those that knew the downgrade would happen and they acted accordingly. Knowing that there would be major sell offs and then purchasing it once it hit the floor?

 

Log in or Sign up to hide this ad.

Possibly. It's tough to know what millions of traders and black box trading programs "think." Most trades these days are executed without anybody actually making the decision. The big trading houses hire more math majors than finance majors these days to work on computer algorithms capable of trading millions of shares in less time it takes for you to press the execute button on your Scottrade account and purchase 100 shares. The days are gone when institutional investors examined balance sheets and profit and loss statements to find companies to buy or sell. A few anachronistic funds still do this, and it is probably the way most people think about investing. But it is no accident that formerly brilliant investment managers like Bill Miller can no longer successfully manage money. He is flying a Spad against opponents in an F-22. A couple of years ago I gave up traditional value investing methods in favor of a mechanical trading system more geared to the times. The past two days could not have happened before computerized trading, and it is difficult to know who knows what and why the market does what it does.

 

Don't assume this is all about the downgrade. That is just one indication of one part of the trouble. You'll welcome the downturns (in the markets, not the economy) as long as you don't ride them down.

We haven't seen real panic yet. The advice I'm hearing through the general media is to sit tight because that is what good investors do and nobody can time the market.

 

It's hard when every time you turn on the stock channel it's like you're watching your life passing before your eyes. I know what you guys are saying, though. Thanks.

 

Thanks. I think you just welcomed my head into the 21st Century. Honestly, I didn't know any of that. I appreciate this, Cloud.

 

http://www.reuters.com/article/2011...ters/businessNews+(News+/+US+/+Business+News)

QE3. Just print more money.:rollling:

 

Stock Channels

I watch MSNBC during the day only for entertainment purposes only. When they go worldwide at night, this is when I take note and listen to what other countries have to say about the current situation.
I think it's better to listen to others, who have no conflict of interest, to get an accurate assessment of what's really going on and not Wall Street, who's main motivation is money or government spin doctors, who's motivation is getting re-elected.

 

I would avoid *NBC for any news at all. CBS, ABC, FOX & CNN are no better. They are tied directly to maintaining the status quo. The world is tearing itself apart in many places and NBC last night felt that doing a story on Michelle Bachman's photo on Newsweek was more relevant. The only exception might be Dylan Ratigan. CNBC is a constant joke.

IMO, the only news out there that tends to address the issues as they need to be addressed is Al Jazeera English and RT News. Both are difficult to find on TV because all major satellite and cable providers simply refuse to carry them in most of the USA. Instead we get crap like CNN, FOX, etc. If you live in a part of the USA where CreateTV can be found, put up an antenna.

 

Msnbc

 

07:00 p.m.

Nightly Business Report

All times US/Eastern.. WTVS Detroit Public TV / DPTV
[sources]
http://www.pbs.org/tv_schedules/

 

I think it is a mistake to exclude any source, even if you don't trust it, and even if they are [GASP!] Americans. It's just as important to examine positions opposed to your view when formulating an opinion. Dylan is smart enough to know something is wrong, but he hasn't quite hit on the truth yet. At least he seems sincere.

 

I'm still "old-school". My Father always said, "Do your homework, minimize expenses, and keep an eye on macroeconomic trends"...OH! and, "Sometimes it's better to make 3% than lose 20%". He felt there was a clear line between investment and speculation. I might not get rich overnight, but I sleep well.

 

I agree. The more perspectives you entertain the more rounded your thought processes and the more informed your decisions. You don't have to agree with everything, just know that it's a possibility. Although I will add that anything I get from the mainstream media is what I consider the opposite of what I should be doing.

 

I am not saying everything from the U.S. media shouldn't be listened too and ocassionly I hear some things that make sense. I did hear something today, which I haven't heard before, and that was the word "Depression" from a guy named Bob Prechter. His opinion is we are in a depression and not a recession. Not as severe as the 1930's but a severe economic downturn.
Bob Prechter presented his case well and seemed more believable than others I have heard in the past.
Then again, I also heard the word "Recovery" earlier in the mourning on the same network.

 

211 trillion in future obligations that we owe

 

"Moody’s, S&P and Fitch Ratings also issued top marks to $3.2 trillion in subprime mortgage-backed securities at the root of the financial crisis, more than three-quarters of which were later downgraded."

http://www.bloomberg.co.jp/apps/news?pid=conewsstory&refer=conews&tkr=ADP:US&sid=aek.Lb8bk72o

Yeah, it certainly sounds like they are "not in business to keep Wall Street investors from losing their shirts". However, I have my doubts about the "honest assessments" part.

 

I don't disagree, but what happens when the numbers published by corporations and governments are false? Or when economic statistics regarding macroeconomic trends are unreliable? Or when there is no asset class that returns 3% without taking on substantial risk?

Welcome to investing in the 21st century!

 

You would have a hard time supporting that number, methinks.