Market Reaction to Standard & Poor's US DOWNGRADE?
- Thread starter shortie
- Start date
Quote from MarketMasher:
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.
Excellent point. Their credibility should be seriously questioned based on their collossal subprime misjudgement but they've been around for a long time and have accrued a lot of good will; they are still considered the premier ratings agency.
Really, S&P is only indicating what most people believe already - that the US debt situation is ominous.
As a counter-response, S&P needs to come out Monday and start downgrading the entire Euro-Zone (except Germany) - be a mtha-fkin' Downgrading Banshee!!
That'll show 'em!!
Sell the rumor, Buy the news
The news came out after the reaction, which explains why 125 did not hold.
i can't believe they downgraded. i was sure the debit limit deal details were such as to satisfy all the rating agencies. does anybody feel the same way? i admit i am totally clueless about this rating business but it seems to make sense.
i think the congress was simply too stubborn and would not follow S&P suggestions. so S&P bitch-slapped them.
i think the congress was simply too stubborn and would not follow S&P suggestions. so S&P bitch-slapped them.
This is only news to the layman.
Smart money won't care... prob gap down a little on Monday and rip hard during the week
Smart money won't care... prob gap down a little on Monday and rip hard during the week