Wait, so is S&P going to downgrade the United States of America @ 8:15pm EST ??!!

Quote from morganist:

It means you are going to have to pay a higher interest rate on the two and half trillion Obama is going to use to win the next election.
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Sure, there's a slight uptick in borrowing cost, but that's going to be very small.

Other than that...?
 
Quote from FrostBead:

Yes, I'm about 25ish pages in. Im trying not to get swayed by your words ^^. I've looked so much at the US and know so little Europe (aside from UK total debt to GDP at 500 % which should make it shittier than US?). I agree with whats written so far, but so far it doesn't sound too different from mainstream criticism against the EZ.
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Read the end when I put forward new suggestions on aggregate demand control. That is the reason I wrote the book because I knew there would be a liquidity trap. The only think tank that was interested at the time was a Eurosceptic so I had to spin it around that. In the end I published it myself because the other think tank that became interested wanted me to change it too much.

You will like the end. I think. I have a lot more. That is just a few ideas and suggests some limitations to the paths taken so far. Like QE and interest changes.
 
Quote from Random.Capital:

Sure, there's a slight uptick in borrowing cost, but that's going to be very small.

Other than that...?
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Well any amount on two and an half trillion is scary. But when countries get downgraded it happens more than once. It is the start of a downward path.
 
There was going to be a Fed meeting on Tuesday, no?

I am too young to know, but does Fed go about changing dates of meetings and announcements in times of crises?
 
Quote from FrostBead:

There was going to be a Fed meeting on Tuesday, no?

I am too young to know, but does Fed go about changing dates of meetings and announcements in times of crises?
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I think the Fed does what it wants.
 
Quote from Zr1Trader:

Well japan debt is AA ....People seem ok with Japan... so who knows. The market will speak soon enough.
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Well our external debt is 6x what Japan has.

We already saw what a few small nations like Greek did to the European Union, and how that affected the world.
 
Quote from will848:

Well our external debt is 6x what Japan has.

We already saw what a few small nations like Greek did to the European Union, and how that affected the world.
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There are so many financial models that will have to be reprogrammed now. The assumption that treasuries are the safe haven of havens will soon be impossible to maintain even for the dim of dim witted. All the asset swaps and what nots used in repoes etc... Treasury colleteral... what a mess...
 
That's more what I'm asking about, Frost. There are a ton of buried assumptions re: Us treasury debt worthiness.

Are we now going to see mass transfer to eg Canadian and Australian sovereign debt? Those countries don't have anywhere near enough debt outstanding to cover a flodd of demand like that.

What a mess...
 
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