Market Reaction to Standard & Poor's US DOWNGRADE?

Market Reaction to Standard & Poor's US DOWNGRADE?

  • Down 10%

    Votes: 33 21.0%

  • Up 10%

    Votes: 12 7.6%

  • Down 7%

    Votes: 7 4.5%

  • Up 7%

    Votes: 3 1.9%

  • Down 5%

    Votes: 16 10.2%

  • Up 5%

    Votes: 2 1.3%

  • Down 3%

    Votes: 18 11.5%

  • Up 3%

    Votes: 14 8.9%

  • +/- 2%

    Votes: 52 33.1%
  • Total voters
    157
  • Poll closed .
I think the market reaction is going to be more about how much weight the market puts into S&P's rating system than about anything else.

After their AAA subprime ratings leading up to 2008, it may not be so great.

Also, as someone said on Bloomberg - this is going to be seen strictly as a Political move by S&P UNLESS they start to downgrade other countries like France too. European Central Banks are holding lot worse crap than the US Fed Reserve (Greek bonds anyone?), so they should get downgraded too. And the list goes on - and on - and on -

Unless it was strictly a politically motivated downgrade.

Also - who made that $billion dollar bet it would happen? Looks like insider trading to me....... :D
 
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are all these countries better than US?

copied from here, limited to AAA domestic rating (USA still not updated on the list I guess): http://www.standardandpoors.com/rat...vernments&subSectorCode=39&start=100&range=50
 

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I bought a 129 ZB 5 day put this morning...

But for different reasons...

Wondering how far it goes. Each 50bp is about 6 points on the ZB around this part of the curve.

My gut says treasuries go up just because Murphy's Law likes to give me the finger on a regular basis.
 
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