Some of the very best opportunities for traders will occur when a bigger player's hand is forced. When a lot of bigger players are forced you will have a mass movement in one direction, and that creates a huge opportunity for an astute trader.
Today Moody's downgraded ALL MUNICIPLE DEBT in the United States. They did not bother looking at the individual cases, they just said the situation is such that all of them have become more dangerous.
Obviously these are the same assclowns that thought tranches of subprime debt were the safest things ever created, so we know the quality of at least some of the work they do.
In this case there are certainly municipalities that are going to default, and certainly some deserving of downgrades. However many should never have been downgraded, and now that they have been they will be mispriced because of the A) The downgrade and then right now there is the temporary displacement of people being forced to sell them off because they can only sell bonds of a certain grade. The best opportunity will occur in the next few days, but it should last for a little while.
As I said the very best money is made when you have a situation where big players are forced to do something that they may not really want to do.
With Moody's having taken the easy way out here, trying to play a game of CYA, this could be one of the biggest opportunities in years to pick up mispriced securities.
Brandon
Today Moody's downgraded ALL MUNICIPLE DEBT in the United States. They did not bother looking at the individual cases, they just said the situation is such that all of them have become more dangerous.
Obviously these are the same assclowns that thought tranches of subprime debt were the safest things ever created, so we know the quality of at least some of the work they do.
In this case there are certainly municipalities that are going to default, and certainly some deserving of downgrades. However many should never have been downgraded, and now that they have been they will be mispriced because of the A) The downgrade and then right now there is the temporary displacement of people being forced to sell them off because they can only sell bonds of a certain grade. The best opportunity will occur in the next few days, but it should last for a little while.
As I said the very best money is made when you have a situation where big players are forced to do something that they may not really want to do.
With Moody's having taken the easy way out here, trying to play a game of CYA, this could be one of the biggest opportunities in years to pick up mispriced securities.
Brandon
