Monday, April 18, 2011
Today, 4/18. the Dow dropped 140 pts to close at 12,200 based on Standard & Poor's (S&P) declaration that they may lower its rating on US government debt. S&P said there is a 33 percent chance it would lower the country's credit rating from AAA in the next two years if Washington fails to pare the country's debts.
And of course, as always, all the financial community cared about was how it would affect them personally and/or if there was a way to profit from the statement by the key ratings agency...
Stocks sink after S&P issues warning on US debt (AP) -- "S&P could lower its rating on U.S. government debt in the future. If that were to happen, the U.S. government would have to pay more to borrow money when it issues bonds. Since the government's borrowing rates are used as a benchmark for nearly all kinds of debt, many borrowers would also pay higher rates, including companies, homeowners and credit card users. That would have a negative impact on spending in general and the overall economy."
~ Why did the verminous investor rats leave the market today? Its no secret the govt have given trillions upon trillions to big business which is released in the form of debt that is now so high, there's no realistic chance it can be paid off ever.. Was S&P's forecast really that surprising that they needed to scurry back into their holes?
Here's some more headlines catering to investors/traders...
Gold and silver keep shining. Thanks, S&P! (CNN-Money) "Metalheads (and I don't mean fans of Metallica, Megadeth and their ilk) got a nice little gift from Standard & Poor's Monday morning. Gold and silver shot up Monday after the credit rating agency spooked Wall Street by revising its outlook for the United States' debt to "negative." "
Nowhere to hide after S&P downgrade (Yahoo!) - "With markets down nearly 2%... where (can) investors hide, or even profit, from a negative tape? His answer, alas, was nowhere..."
~ If investors aren't rats, they certainly are the cockroaches of the world.. no matter what happens to the rest of humanity, they make sure they're well insulated and never ever take a financial loss of any kind. And if they ever have to, its a 'shock' to their system...
Posted by Susquehanna at Monday, April 18, 2011