S&P to downgrade US credit rating?

Pimperne1

Could be problematic.

http://www.housepricecrash.co.uk/forum/index.php?showtopic=167539

Pimperne1

Thanks to CreditCrunch for this link (although as he has done diddly squat for two years while others have kept his website running I don't feel too guilty).

http://blogs.abcnews.com/politicalpunch/2011/08/govt-official-us-expecting-sp-downgrade.html

Ark_Welder

Old news...

http://finance.fortune.cnn.com/2011/04/25/a-u-s-debt-downgrade-isnt-the-real-problem/
http://www.ft.com/cms/s/0/b72e3018-9e97-11e0-9469-00144feabdc0.html#axzz1UAQZDBTK
http://www.washingtontimes.com/news/2011/jun/2/us-debt-rating-faces-downgrade/

cepheus

It is Robert Pestons inside info again, although he tried to calm things down by saying the markets may have factored it in. These rumours are however gathering, could be announced tonight.

http://www.businessinsider.com/rumor-sp-will-downgrade-us-credit-rating-after-markets-close-2011-8

If untrue we might expect a big bounce.

globalds

cepheus wrote: »

If untrue we might expect a big bounce.

And if it is true.

What can we expect ?

Thrugelmir

globalds wrote: »

And if it is true.

What can we expect ?

Policies that actually start to tackle the unsustainable levels of debt in the West. Rather than kick the problem further along the road as politicians have been doing.

Ark_Welder

ItsBrightButNotOrange wrote: »

Oh yeah.


You were the expert who said the markets had adjusted already last weekend. :rotfl:


Ooops

Was I? Got a link to the relevant post?

Ark_Welder

ItsBrightButNotOrange wrote: »

No hiding from the fact some people do read this board & pay attention to who writes what.

Keep searching for the Ark Indi.

Thats a point. How do you weld solid gold? Or is is rusty steal?

Then it should be easy for you to back up your claim by providing a link to the relevant post.

vart400

http://www.bbc.co.uk/news/world-us-canada-14428930

All done! Brand spanking new AA+ rating for America!

HAMISH_MCTAVISH

More game playing.

Moody's and Fitch have affirmed the AAA will remain for now. And as most significant buyers of bonds rely on a blended rating from multiple sources, it's unlikely to materially impact the cost of debt.

Some analysts have questioned whether a ratings cut would impact demand for US debt, have dismissed the raters as having low credibility, and questioned whether the markets would take much notice.

Ratings agencies Moody's and Fitch both reaffirmed their triple-A rating of US debt shortly after Obama signed a bill raising the debt ceiling on Tuesday.

http://www.smh.com.au/business/us-has-its-credit-rating-cut-20110806-1ig8p.html#ixzz1UD0qQKcP

Generali

HAMISH_MCTAVISH wrote: »

More game playing.

Moody's and Fitch have affirmed the AAA will remain for now. And as most significant buyers of bonds rely on a blended rating from multiple sources, it's unlikely to materially impact the cost of debt.


http://www.smh.com.au/business/us-has-its-credit-rating-cut-20110806-1ig8p.html#ixzz1UD0qQKcP

There will be a few forced sellers of US Government debt as there will be some funds that are only allowed to invest in S&P AAA rated bonds. My guess is that won't be a huge number although there's no real way of knowing unless you work for one of the big fund accountants (eg Citibank, JP Morgan, State Street, BNP Paribas).

As they pointed out this am in FT Alphaville the problem isn't so much the primary effects as we can make a reasonable stab at what they are. The problem really is what happens from here. For example, what is the safe haven now, the risk free asset? EUR? CNY? JPY? They all have problems attached. Gold?