Us is downgraded to aa+

US IS DOWNGRADED TO AA+


what's this going do to pm's and stock market and everything under the sun???

 

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My uneducated guess would be PMs up, stock market down. This downgrade is long over due though. I never understood how the US had a AAA rating. If the average joe spent like the fed gov't does, they would be in a world of hurt with a horrendous rating.

 

Odrama will just have to print/coin some more money...

 

I gave up on predicting- it may be "baked into the cake" though

 

it's not a coincidence they waited til friday night after the markets closed to announce that ... that gives wall street 2 days to get used to the idea

 

About 3 Pm pacific time, these types of news stories
http://www.bloomberg.com/news/2011-...owngrade-unidentified-official-tells-cnn.html

That S& P miscalculated by "trillions" and are reconsidering the downgrade and may retract it. Fed is very unhappy , but I am sure giggling in their beer.

Jim

 

It should be irrelevant, partly because it isn't a surprise to the market, but we'll have to wait and see if it is used as an excuse for another market move.

Most institutional investors consider treasuries to be in a class by themselves compared to corporate and municipal debt. If treasuries aren't AAA, then there is no AAA category. No company can be considered to have AAA debt if the Treasury which orders the creation of the currency in which the debt is denominated isn't AAA. No bond can be higher rated than the currency it is denominated in. The debt is the money and the money is the debt.

 

All good points, but once the dusts settles, it's obvious we need to get a handle on our debt...we don't need S&P to tell us that. This likely means no fresh government stimulus in the short term...meaning, upward pressure on interest rates and downward pressure on stocks and PMs.

 

It's way over my head. Because of that I'm out of the stock market and back in cash. After 2008 I swore I would never ride the market down again.

One thing I'm sure of is that the downgrade isn't going to fix the slumping economy. Neither are all the band aids being applied here and in Europe. I won't buy into any bounce or relief rally until I feel like I have an edge.

 

This whole thing makes me think about my 403B. I keep dumping money in it every paycheck. Its not really as high as it should be(well, obviously) and now this has made me wonder if I should just take the $$ I am dumping into the 403B and just buy silver and gold. It just seems more stable. I dunno. Maybe I'm dumb.

 

It looks like the downgrade just happened.

http://www.newsobserver.com/2011/08/05/1394238/sp-downgrades-us-credit-rating.html

Hard to say if metals will go up or down since probably everything will go down, even though it's bullish for metals. Probably more so for gold, at least until silver margin rates are 100%

 

They did downgrade as reported, but then later it is reported that they miscalculated the US debt to GDP ratio and are reconsidering the downgrade. I am sure that the negative outlook will be maintained by them, but they are in a rock and hard place mode on the math....sounds like the opposite of the housing derivative ratings.
http://ibnlive.in.com/generalnewsfe...s-downgrade-after-challenge--cnbc/778066.html

Jim

 

It's more a statement about the dysfunction in DC. The other two did not downgrade, as it's clear the US has the ability to and will always pay it's obligations. After the dust settles, I see very little consequence, if any.

Let's not forget, S&P also threw higher taxes into the equation. Any credible economist will tell you we should not lower spending in a recession and taxes on upper incomes should have never been lowered to the record lows they are at now. Lower taxes, as has born out do not create significantly more jobs (at least not in America).

 

Sorry, I forgot which forum I was on. But when I am elsewhere, I keep trying to edit the posts of others to our rules

 

Gold should go up on Monday and the markets will head south. There is no way that this credit downgrade will help our economy.

 

gold and the market

Gold should go up on Monday and the markets will head south. There is no way that this credit downgrade will help our economy.

 

This is the first time in history this happened. Without further comment, I'll go as far as to say, don't anybody kid yourself, this is a dark, dark day.

 

Logically, this should push PMs higher Sunday night. Check your charts starting at 6pm est.

 

I've sworn off political discussion on CT, however, it's difficult to discuss many aspects of coin collecting without discussing the underlying economics of the hobby. Unfortunately, economic discussions oftentimes cut pretty close to the political bone.

With the deftness of a surgeon, I would like to ask each of us to privately consider a couple of questions...

Which European countries are the most fiscally stable...socially liberal ones or socially conservative ones?
Which US states are the most fiscally stable...socially liberal ones or socially conservative ones?

There's more to life than economics so I'm not suggesting one philosophy is superior to another...but it sometimes helps to step back and take a look at the big picture when considering the discourse of a particular issue...like economics.