S&P downgrades U.S. debt

[themadscientist]

shhhh, don't tell people that. Some dude somewhere will be expected to buy it to show how much he loves a chick!

[Dattebayo]

shhhh, don't tell people that. Some dude somewhere will be expected to buy it to show how much he loves a chick!

The star registry will let you name a white dwarf star after her. Next best thing? Unless she thinks' you're calling her short? In which case you're fcuked? Lordy, women can never be happy...

[Jesda]

http://www.sfgate.com/cgi-bin/blogs/abr ... y_id=94858

S&P blames republicans ...

And they would be 50% correct.

[bigbadberry3]

http://www.sfgate.com/cgi-bin/blogs/abr ... y_id=94858

S&P blames republicans ...

And they would be 50% correct.

Lol well that's their opinion but our rating. If you read further, you saw they blame Republicans for no increase in revenue. One of those balanced approached deals.

[RCA]

Well apparently Eikon was right, nothing happened and we are over reacting to this downgrade.

http://news.yahoo.com/video/us-15749625 ... 16142.html
(I apologize for the commercial)

[PapaSmurf2k3]

^I dunno, that video made it seem like this is a pretty huge event...

[themadscientist]

As I type this gold is up $45 an ounce. Lucky I locked in some at Friday's price. We will see what happens when New your opens. This is just the asian markets so far.

[AZ89two4Tsx]

Hmmmmmmm.....I guess I'm glad I'm waiting to invest my money.

[RCA]

With volatility there is money to be made but it is more risky.

As for PapaSmurf looking at buying plane tickets, oil is down. Keep an eye on it and check ticket prices.

[Speedy7_7]

We allow them to do what they do by voting them in and not removing them, and/or not being involved. If they are allowed to suck it's because we suck.

90 percent of people vote for the name they hear most, which is the name with the most money, which is the name owned by corporations. Our system is broken, keep your head down and learn anything you can to do for yourself. The government will not help you when you need it most.

[snwbrdr435]

^ Unless you are one of the people who gets everything paid for by the people

[nissangirl74]

FYI - the Dow closed today down 600+ points, the worst day since December 2008.

[telcoman]

FYI - the Dow closed today down 600+ points, the worst day since December 2008.

Good buying opportunity now

I don't know where the bottom is but I don't think it is very far away now

Buy low sell high

Telcoman

[AZhitman]

^ This.

My investments benefit from days like today, and dollar-cost averaging over the long haul means I'm not interested in panicking like the rest of the sheep.

In fact, tomorrow morning might be a good time to buy some more shares.

[bigbadberry3]

Bottom not close, will rebound tomorrow, but will fall more.

[szh]

FYI - the Dow closed today down 600+ points, the worst day since December 2008.

Good buying opportunity now

I don't know where the bottom is but I don't think it is very far away now

Buy low sell high

Telcoman

Agreed ... my 401K value took a plunge today, but I know that my investments put int (since I do bi-weekly amount - max'ed out) over the next few weeks will make it stronger than ever in the long run.

Z

[PapaSmurf2k3]

Ford is under $10/share.

...hmmmmmm

[bigbadberry3]

Ford is under $10/share.

...hmmmmmm

You missed out, I got them when they were under 3 :P

[szh]

Ford is under $10/share.

...hmmmmmm

You missed out, I got them when they were under 3 :P

When was that? I missed out too!

Z

[PapaSmurf2k3]

I almost almost almost bought back then... they bottomed out around $1.50 IIRC. Bex and I were both talking about it.

I ended up buying a ton of BorgWarner stock instead. It was about $16 per share. It surpassed 80 a little while ago, but over the past few weeks, has dropped to 60 something. Still pretty good.

[bigbadberry3]

I almost almost almost bought back then... they bottomed out around $1.50 IIRC. Bex and I were both talking about it.

I ended up buying a ton of BorgWarner stock instead. It was about $16 per share. It surpassed 80 a little while ago, but over the past few weeks, has dropped to 60 something. Still pretty good.

Smart move, I got lucky with Ford not taking buy out money. I sold mine once they hit 14. Wouldn't recommend them to anyone except for a long term purchase.

Stocks are fun, play what you can lose though.

[themadscientist]

Gold is up $100 since friday. It eclipsed the spot price of platinum.



That's one buying opportunity missed. Not by me of course.

[telcoman]

Yes S&P downgrades US debt

This is the same company that gave AAA ratings to mortgage backed securities a few years ago just before the housing market crashed.
Just the fact that the herd mentality that sold stocks yesterday and rushed into the same treasury securities that S&P just downgraded tells you something about how well regarded S&P really is.
Their math skills are poor also.

They suck

Telcoman

[stebo0728]

Heard on the radio today that of the last 11 countries that S&P downgraded over recent history, 10 of them ended up with LOWER average interest rates with a year than before the downgrade. Thats encouraging. The default would have been even less painless. Everyone said the repubes were "holding the economy hostage" because the world would end. It wont. This spending battle needs to be happening, and I'm ashamed the right caved, and failed to push CCB.

[themadscientist]

Two years eh? That sounds like a considered policy.

U.S. stocks soared as the Federal Reserve promised low interest rates until mid-2013 and stated that it expects inflation to remain low.

http://www.ibtimes.com/articles/195209/ ... d-2013.htm

Have you ever been driving when you lose traction and hang the tail out and you counter steer, but you steer too much and pitch the other way and you wind up over correcting again and again until the car spins out? The Fed just did the last counter steer, wait for the spin out.

These guys are friggin clueless.

This dude is not. I was was pounding on my desk watching him drop that hammer!

[youtube]http://www.youtube.com/watch?v=vGJKtlRyGjs[/youtube]

[nissangirl74]

Ford is under $10/share.

...hmmmmmm

Hyundai is at $220.36
http://www.marketwatch.com/investing/stock/hymlf

Nissan is at $18.54
http://www.marketwatch.com/investing/stock/nsany

Ford is at 10.54
http://www.marketwatch.com/investing/stock/f

The Koreans are coming boys! :

Also, the Dow slid another 500+ points today. I wonder how long it will take to reach stability again, if ever? Or is a total economic collapse unavoidable?
*TMS* the man in that video was spot on

[PapaSmurf2k3]

This dude is not. I was was pounding on my desk watching him drop that hammer!

[youtube]http://www.youtube.com/watch?v=vGJKtlRyGjs[/youtube]

I am quoting this in hopes that the president googles something which would bring this up.
Thanks for posting TMS!

[PapaSmurf2k3]

Hyundai is at $220.36
http://www.marketwatch.com/investing/stock/hymlf

Nissan is at $18.54
http://www.marketwatch.com/investing/stock/nsany

Ford is at 10.54
http://www.marketwatch.com/investing/stock/f

The Koreans are coming boys! :

Also, the Dow slid another 500+ points today. I wonder how long it will take to reach stability again, if ever? Or is a total economic collapse unavoidable?
*TMS* the man in that video was spot on

Stock price itself doesn't really show how a company is doing... stock price x # of available shares on the other hand does. (If Hyundai split evenly 3 times, their stock would be like 55 bucks, that doesn't mean hyundai pre-split was more successful).

Market volatility (high frequency of large peaks and valleys) is a great way to make a crap ton of money in a hurry... you just have to predict it. Some people out there can. I'm sure there are more than a few people making insane amounts of money right now.

[smockers83]

Personally, I'm not sure that the markets know what to make of the debt downgrade. How does one trust a debt rating from a rating agency that rated synthetic CDOs as safe? Plus, there are countries in worse shape than the US that are rated AAA, namely France.

As equities are falling, people are piling into bonds, and guess which bonds? US Treasuries. Yes, the US debt has been downgraded, but from ultra-safe to a smidgen less than ultra-safe. The fact that the US has been at AAA for eternity, it will take years and years for the dollar and Treasuries to be thought of as not the safe haven of the world. S&P has not said that by downgrading the US that it doesn't believe it can't pay it's debt. It knows the US can pay it's debt.

The Fed did not promise 0% interest rates for the next two years. The Fed lowered it's outlook on the economy, seeing slower growth than otherwise thought, and for the foreseeable future of the next two years, it expects to have 0% interest rates. If the economic picture changes in the next two years, the Fed will act accordingly.

We will not inflate our way out of this. I don't see it happening. What I see happening before that's considered is a business-friendly environment in DC. Grow the economy and you'll raise revenues organically. Yes, taxes have to be revisited. I cringed was very disappointed by Republicans not willing to budge on this issue. The fanatical Tea Party can be partially to blame for that part. You don't have to raise the rates, but revamp the tax code and broaden the base by getting rid of credits and deductions and then reduce the rates. Everyone in DC needs to get off their high horse, tuck their balls in, and do some tough work.

Back to the markets. Equities have a bit more to fall, some are saying Dow to 9,000. Whether it's 9,000 or higher or lower, there is still a lot of movement downward to be seen based on market sentiment. This is a systematic sell-off...professional investors aren't panicking but hedge funds are indeed scrambling. So if you're dollar-cost averaging, yes good buying opportunity but not the best one yet. If you're looking for preservation of capital or a hedge against inflation or the USD, I wouldn't get into commodities in general, but into precious metals, namely gold. Oil you don't want to be in because as the world economic picture darkens, the price of oil will fall. But you also have to remember, in the markets, you don't take a realized loss until you make that sell transaction. It's only a loss on paper. If you have a long-term outlook for the next 25-30 years, yeah it sucks and there are things you can do to preserve capital at this point and re-enter the market later, but trying to time the market always costs you. There's generally only a few that are able to and it's all luck in that it's a good call.

[carloslebaron]

themadscientist said, "I would suggest you try to own as many real things as possible, not buy with loans."

Right suggestion. By searching several countries going to fast and big inflations, the banks and corporations prepared themselves, by pulling funds and investing somewhere else, while preaching that things "are going ok" before the great crisis hits over there. When the waves of inflation arrive, the common dude is found paying 20%, twice or possible much more for goods in a short period of just a few months.

Like to say, that you want to buy a 50" flat TV at $3,500, in two weeks will be almost reaching $4,000 and after two months reaching $6,000.

With gasoline is the same increase, and the ones who bought cars and houses before the inflation, their loans may or may not be affected, be sure what kind of contract you are getting.

If inflation reaches US will be a sudden surprise attack against you, and mostly will become to be right after an attack is made to a US headquarter somewhere, or something similar to deviate the full attention to the crisis, and to justify at the same time why the government must take such kind of economic impositions.

I have visited countries which suffered sudden inflation, and people told me the same version of how their crisis came to be: by surprise, from one day to another.

I don't see that such a crisis will happen to US in a near future, and this is what scares me, that beacuse the way the media is currently manipulated, it will be hard to guess with close approximation the inflation arrival. At least, in other countries you catch the hook very fast, because the day before their great inflation all the newspapers post in their first page with big letters "Oil found in the Jungle!" "Huge Gold Mine found in mountains!" ...