Market Reaction to Standard & Poor's US DOWNGRADE?

[noddyboy]

Quote from S2007S:

Do you actually believe the US should have a triple A rating?

Compared to others of the same rating, yes.

 

[Lornz]

I think the US should be more concerned with getting a AAA membership; someone needs to salvage the wreckage...

 

[SteveNYC]

Quote from denner:

The only thing that I saw during the carnage of 2008 were guys too afraid to short because of the intense volatility, but never afraid to try and bottom pick just about every day.

Case in point was crude oil. That market dropped from $147 to $38 and I literally never saw anybody shorting the market the whole ride down. Instead, everybody was certain that they had bought in at "solid support" and averaged down as it continued to decline.

Basically, anybody who shorts the market (or was trying it in 2007-08-09) became conditioned for the massive snapback rallies. At some point, even the most bearish bears were just going long instead, figuring there was less risk buying every sizeable decline.

Probably the fear of a massive short squeeze. It's pretty violent and fast to the upside. You lose so much money so fast as a shorter in a short squeeze that you don't have a chance to realize what is happening. You just blow up and you are left stunned in disbelief. You end up thinking that this is not possible. The stock was supposed to go down more. It is a dog. Everything is bad. No positives.

Remember the Internet stock short squeezes? AMZN, EBAY, AOL, YHOO, CMGI,...

You saw multiple consecutive days of $50-$100 moves up. It was the unreal.

I saw QCOM blast up from $45 to $800 in like 6 months.

Remember AOL splitting their stock like 2 times in one year?

Do stocks even split anymore?

 

[EMRGLOBAL]

I rather listen to Warren Buffett than a rating agency like S&P.
--------------------------------

Well, looks like the Markets Disagree, at least for the short term. Dow Futures down about 2% already. Asian markets look to open down huge.

Warren has a lot at stake if the this market goes to 5000 over the next few years....and S&P has down graded Berks. stock before as well..


The US is heading towards GREECE like meltdown.

After looking at a lot of data over the weekend, as much as I think we need to get the Budget under control. We need to open the flood gates of Lending for Private Business ASAP! If we do not, Small business are going to imploded nation wide as the meltdown becomes reality for this country.

 

[SteveNYC]

Quote from S2007S:

Do you actually believe the US should have a triple A rating?

IMO, the only people who are in position to determine the credit rating of USA are the people with a lot of money on the line.

How much money do the guys and gals at the S&P have on the line? Probably not as much as Buffett.

 

[Random.Capital]

If Buffet screws up, he gets a bailout.

That isn't quite the same as having "money on the line".

 

[shortie]

since Buffett is Long he is always talking Up the market. does anybody buy his AAAA rating on USA?

 

[Illum]

Silver is up. Europe buying bonds. Buy the dip

 

[SteveNYC]

Quote from EMRGLOBAL:

I rather listen to Warren Buffett than a rating agency like S&P.
--------------------------------

Well, looks like the Markets Disagree, at least for the short term. Dow Futures down about 2% already. Asian markets look to open down huge.

Warren has a lot at stake if the this market goes to 5000 over the next few years....and S&P has down graded Berks. stock before as well..


The US is heading towards GREECE like meltdown.

After looking at a lot of data over the weekend, as much as I think we need to get the Budget under control. We need to open the flood gates of Lending for Private Business ASAP! If we do not, Small business are going to imploded nation wide as the meltdown becomes reality for this country.

Call me an idiot/crazy but I don't pay attention to futures anymore. It screws up my trading more than it helps.

S&P downgraded Berk. stock b4? Lol. Buffett is underrated. It's ironic.

 

[SteveNYC]

Quote from Random.Capital:

If Buffet screws up, he gets a bailout.

That isn't quite the same as having "money on the line".

Yeah, he might get a bailout but at what price?

I don't think he wants a bailout ever.