Financial News

[Balta1701]

More than 1 of the 3 need to downgrade for it to actually matter. Also, the downgrades don't actually mean anything, they're more or less just "advise". Japan said they're not changing their policy with the USD regardless of the downgrade -- in other words - Japan said they're completely dismissing the S&P downgrade.

 

What these usually do is cause interest rates to rise ever so slightly, if people listen to them.

At least my understanding is correct. If anyone listens to them there will be a slight bump in rates, but either it won't offset the plunge from last week, or if it does, then another step towards European collapse will push them back the other way.

[jenksfart]

what ever you do.... don't buy the dip.

[Balta1701]

what ever you do.... don't buy the dip.

But how will I add flavor to my chips?

[jenksfart]

But how will I add flavor to my chips?

 

with gold.

http://www.washingtonpost.com/world/middle...UmwI_story.html

[Balta1701]

with gold.

http://www.washingtonpost.com/world/middle...UmwI_story.html

Yeah, what kind of horrible society would allow that kind of inequality, where services get cut for the poor while the rich eat gold-encrusted ice cream?

[jenksfart]

Yeah, what kind of horrible society would allow that kind of inequality, where services get cut for the poor while the rich eat gold-encrusted ice cream?

 

 

1. Success should not be something to frown upon.

 

 

2. Who am I to tell someone how to enjoy their success?

 

 

If they want gold ice cream, I don't see the harm.

 

 

If the poor want gold Ice cream too, then become successful at something.

[southsider2k5]

So the markets are sitting down a little under 2%, or pretty much where they opened up Sunday. The ironic part? The dollar is up 1/2%, so the energies are all down big. Looking at where we are at, we should be seeing the national gas average push back to at least $3.50, but maybe even $3.25 very soon.

[Balta1701]

1. Success should not be something to frown upon.

 

 

2. Who am I to tell someone how to enjoy their success?

 

 

If they want gold ice cream, I don't see the harm.

 

 

If the poor want gold Ice cream too, then become successful at something.

I agree. Who are you to tell the Iranians how to enjoy their success?

[Balta1701]

So the markets are sitting down a little under 2%, or pretty much where they opened up Sunday. The ironic part? The dollar is up 1/2%, so the energies are all down big. Looking at where we are at, we should be seeing the national gas average push back to at least $3.50, but maybe even $3.25 very soon.

Despite the downgrade of U.S. debt, Treasury prices rose, pushing yields lower. The yield on the benchmark 10-year U.S. Treasury fell to 2.49% from 2.56% late Friday.

[southsider2k5]

And we are rallying out of the open.

[southsider2k5]

And we are rallying out of the open.

 

Well that didn't last long... I wonder if we test 11k now?

[southsider2k5]

Well that didn't last long... I wonder if we test 11k now?

 

11 points away on the futures.

[Balta1701]

The plunge on Treasuries really is getting impressive.

[southsider2k5]

The plunge on Treasuries really is getting impressive.

 

I wonder who is doing the buying?

[southsider2k5]

I notice this one also got slipped in there...

 

http://www.cnbc.com/id/44058747

 

Standard & Poor's downgraded the ratings of government-sponsored enterprises Fannie Mae and Freddie Mac Monday, citing their reliance on U.S. government.

 

Michele Constantini | PhotoAlto | Getty Images

 

Both Fannie and Freddie were lowered to AA+ from triple-A.

 

The downgrade came amid a number of other ratings actions that are rippling from S&P's decision late Friday to cut the credit rating of the United States one notch from triple-A to AA+.

 

S&P also cut ratings for several of the main arteries of the US financial system—the Depository Trust Co. National Securities Clearing Corp., Fixed Income Clearing Corp. and the Options Clearing Corp.—were cut one notch to AA-plus.

 

These institutions, previously rated AAA by S&P, clear and process trades and are crucial to the daily workings of the U.S. financial markets.

 

Officials at S&P said they plan to indicate how local and state governments and insurers will be affected by the rating agency's downgrade of long-term U.S. debt [cnbc explains] .

 

S&P officials told reporters Monday that the agency is looking at key sectors that are linked to the U.S. debt, and will announce "shortly" how those ratings might be affected.

 

The officials did not name any specific governments or insurance groups. But they said triple-A-rated insurance groups and state and local governments affected by possible consolidation of programs in Washington would likely be reviewed.

 

The S&P noted that some of the fiscal indicators in the UK are worse than in the U.S., especially in terms of its debt, but it also doesn't expect the U.S.'s debt burden to decline. For France, the S&P said it has addressed its long-term entitlement programs effectively and showed the politcal will to deal with issues.

 

The S&P expects the debt burden in Germany, the UK and France to peak in a few years and then decline.

 

It said the U.S.'s political environment was strong, but not as strong as most highly rated governments. It noted elected officials have been unable to put U.S. finances on sustained footing comparable to other triple-A-rated sovereigns.

 

For the S&P to downgrade the U.S. even futher, it said it would need greater fiscal slippage than it anticipates. On the flipside, the possibility of upgrade depends on policymakers showing broader consensus on how to make fiscal policy choices.

 

The S&P earlier said that it thinks its sovereign ratings are robust and ahead of its rivals, and that it plans to continue that track record. It also noted that printing money doesn't deliver a triple-A rating.

[southsider2k5]

Futures under 11k, cash almost there too.

[southsider2k5]

Quick move under 11k in the cash, and then an even quicker rally back. Let's see if they can hold it til the close. That would be a good sign.

[southsider2k5]

That didn't last long... Down 500+ now.

[southsider2k5]

So much for the hopes of a late rally. They rebounded about 250 off of the lows, but now they are back down there again.

[Jenksismyhero]

It was such an awesome decision for me to put nearly a full year contribution into my roth IRA last month.

[Balta1701]

So, I think this would be the equivalent of downgrading Google's stock to "Sell" and having their stock jump 50 points in response.

[Balta1701]

Goldman Sachs now projects that through the end of 2012, the unemployment rate will actually increase.

[Chisoxfn]

Why did BofA fall 20%. A 10Billion dollar crappy lawsuit by AIG. Even if it was a legitimate suit, that isn't something to shoot your stock down 20% in one day. A couple other factors as well. Makes me think there could be a good value there.

[Balta1701]

Why did BofA fall 20%. A 10Billion dollar crappy lawsuit by AIG. Even if it was a legitimate suit, that isn't something to shoot your stock down 20% in one day. A couple other factors as well. Makes me think there could be a good value there.

Well, since the GSE's have a very large set of claims against BofA and they were downgraded today, that also could have an impact. But the other thing you missed is that as of 5:30 p.m. on Friday, the state of New York really got into the act, going after BofA on the mortgage business, with other state AG's planning to join in as well.

[Chisoxfn]

I had actually saw those suits, but that should have already been priced into the market by this point in time. Not to mention the big argument as of this point is more in relation to what responsibility BofNy Melon had in the matter as opposed to BofA who is finalizing its settlement (pending court approval).

 

I personally am not really sure I follow how AIG has a case (today's suit). They are b****ing about buying high yield investments which didn't work out. The very definition of a high-yield investment is that of "high risk". No one was acting as if there wasn't any risk.

 

Now if BofA sold these things on false pretenses, that is another story. But from what I can tell, this is just more noise and from a pure financial perspective these suits aren't going to put BofA out of business.

 

In fact, every bit of me thinks the company is trading where it is based more on tons of negative PR and investor overreactions than anything else. From a pure business perspective, the company would appear to be undervalued.

 

Whether I put my money where my mouth is a whole nother story. I'm a coward with my money that isn't in my 401K and my 401K is very diversified and well, quite frankly, it is for the long-haul anyway.