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2011-08-09 Economy

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Posted by Fred 2011-08-09 00:00|| || Front Page|| [11129 views ] Top

#1 The downgrade as a cause is little more than a media meme.

In reality there has been massive buying of US bonds with a consequent large drop in interest rates paid.

Exactly the opposite of what a downgrade would cause.

From Rooters,

U.S. Treasury prices soared on Monday after the first credit downgrade of U.S. debt caused investors to flee risky assets in favor of bonds on concern over the ripple effects of the ratings cut.

Posted by phil_b 2011-08-09 02:16|| 2011-08-09 02:16|| Front Page Top

#2 The issue is: who's buying them? I had thought the Fed was as pretty much the only customer.

Posted by Steve White 2011-08-09 07:58|| 2011-08-09 07:58|| Front Page Top

#3 It's also the story of being chase by a bear. You don't have to be faster than the bear, just faster than someone else in the group. No one is in good shape and everyone of any substance is tied to the US economy. If we go, they all go and there is no real safe haven.

Han Solo: You said you wanted to be around when I made a mistake, well, this could be it, sweetheart.
Princess Leia: I take it back.

Posted by Procopius2k 2011-08-09 08:48|| 2011-08-09 08:48|| Front Page Top

#4 The issue is: who's buying them? I had thought the Fed was as pretty much the only customer.

A lot of money moved out of equities in the last few days. It has to be parked somewhere. What's the least risky investment around, regardless of S&P's opinion?

Posted by Nimble Spemble 2011-08-09 09:05|| 2011-08-09 09:05|| Front Page Top

#5 No one is in good shape and everyone of any substance is tied to the US economy. If we go, they all go and there is no real safe haven.

Retirees are taking a hit again in their retirement portfolios. Obama is not a friend of the seniors. I'm not sure who he is a friend of at this point--fellow ideologues and elites who have swallowed the Kool-Aide of statism and Chicago criminality?

Posted by JohnQC 2011-08-09 11:29|| 2011-08-09 11:29|| Front Page Top

#6 You want a recovery?
Ten seconds after Obama is defeated at the Polls, that'll do it.
The market will jump like a stuck horse.

Posted by Redneck Jim 2011-08-09 12:35|| 2011-08-09 12:35|| Front Page Top

#7 Yes, and replaced by Sarah Palin. Markets will be splitting their guts laughing at the 'genius' of the American electorate, that there will be a halt in trading for a few hours, thus stopping the stock tumble brought about by 30 years of 'VooDoo economics'.

Posted by Shakey Steve 2011-08-09 12:46|| 2011-08-09 12:46|| Front Page Top

#8 Oddly enough, Mr. Steve, there are Canadians who are not unthinkingly rude to Americans, despite what you have been taught in school about the diffence between the two countries. Why must you, then, hew so closely to our stereotype of ignorant, countrified neighbors to the north, upsetting all the good will those others have garnered here? Especially when you demonstrably are capable of making sensible comments on other topics...

Posted by trailing wife 2011-08-09 13:01|| 2011-08-09 13:01|| Front Page Top

#9 Uh Steve, Sarah isn't running. Your post is something that should appear on Daily Kos. Not too bright.

Posted by remoteman 2011-08-09 14:00|| 2011-08-09 14:00|| Front Page Top

#10 Gentlemen, the market recovered about 1/2 it's drop yesterday, all is well.

Posted by Redneck Jim 2011-08-09 17:33|| 2011-08-09 17:33|| Front Page Top

#11 Means it's still down 750+ since Monday.

Posted by Pappy 2011-08-09 18:36|| 2011-08-09 18:36|| Front Page Top

#12 "Dispatch, we got a dumb one here"

Posted by Frank G 2011-08-09 18:55|| 2011-08-09 18:55|| Front Page Top

#13 Ima feel better now than Shaker Steve has showed up. We haven't had a decent argument in ages, I suspect he is a dying breed of fine woodworkers, unable to breed because of his beliefs. Sad, but in many ways admirable.

You Rock Thar ShakeySteve!

Posted by S 2011-08-09 21:00|| 2011-08-09 21:00|| Front Page Top

#14 I see whut u did thar...

Posted by Pappy 2011-08-09 22:35|| 2011-08-09 22:35|| Front Page Top

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