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US down to AA+....What would happen on monday.....

Did u not know big coy announcing cutting manpower, why? since they are making good profit, shd be expanding, right?

simple, they know order have slow, going forward, that time is bad ahead., that is why.

to stay in business, they got to downsize, or get loan or go under..first, they cut cost, next sell asset, next,, chapter 11. 

rotijai      ( Date: 06-Aug-2011 16:27) Posted: nop.. not stock nor property.. well.. cant sell business and lose their jobs uh? :) andreytan      ( Date: 06-Aug-2011 16:25) Posted: In a deleveraging and deflating enviroment , you dont want to hold stock or property,  company sell asset to rise capital, if there cannot get it form institution, so it have a downward pressure on asset. and these bad economic situation , they got to do a fire sale, that make px come down even faster.  so both security and asset px will collapse.

 

i think next yr, property will start to collpase, hope not so fast., but gradually.

if u got stock in property, time to sell.

and those reit, will also be affected.

cash will be king. 

 

nop.. not stock nor property..

well.. cant sell business and lose their jobs uh? :)

andreytan      ( Date: 06-Aug-2011 16:25) Posted: In a deleveraging and deflating enviroment , you dont want to hold stock or property,  company sell asset to rise capital, if there cannot get it form institution, so it have a downward pressure on asset. and these bad economic situation , they got to do a fire sale, that make px come down even faster.  so both security and asset px will collapse.  rotijai      ( Date: 06-Aug-2011 16:17) Posted: lol.. i am only worry tat US dollar wont go up.. if it goes up to 2 (against sgd).. even better :P my family got like 90% of our assets in US..lo

 

In a deleveraging and deflating enviroment , you dont want to hold stock or property, 

company sell asset to rise capital, if there cannot get it form institution, so it have a downward pressure on asset.

and these bad economic situation , they got to do a fire sale, that make px come down even faster. 

so both security and asset px will collapse. 

rotijai      ( Date: 06-Aug-2011 16:17) Posted: lol.. i am only worry tat US dollar wont go up.. if it goes up to 2 (against sgd).. even better :P my family got like 90% of our assets in US..lol andreytan      ( Date: 06-Aug-2011 16:14) Posted: US dollar, but u say the dollar is shit, right. if the world go to reverse gear, u will be amaze at the speed of the dollar soaring skyward. why? unwinding, deflating, deleveraging ? .

 

lol..

i am only worry tat US dollar wont go up..

if it goes up to 2 (against sgd).. even better :P

my family got like 90% of our assets in US..lol

andreytan      ( Date: 06-Aug-2011 16:14) Posted: US dollar, but u say the dollar is shit, right. if the world go to reverse gear, u will be amaze at the speed of the dollar soaring skyward. why? unwinding, deflating, deleveraging ? .   rotijai      ( Date: 06-Aug-2011 15:57) Posted: u mean sg dollar or us dollar ? :

 

US dollar, but u say the dollar is shit, right.

if the world go to reverse gear, u will be amaze at the speed of the dollar soaring skyward.

why? unwinding, deflating, deleveraging ?

.

 

rotijai      ( Date: 06-Aug-2011 15:57) Posted: u mean sg dollar or us dollar ? :P andreytan      ( Date: 06-Aug-2011 15:56) Posted:   You are your very own good news and bad news. But if you want to trade, fine, but if you think buy value to long, wait a while first. if you have gone thro 2008, you know, when ,right? as politician kick the can down the road, the can didn't disappear,in fact, it grow bigger, so after kicking and kicking. now cannot kick anymore, because now the can grow so big that it got to roll over ten time around the world , so the day of reackoning have arrived. cash is king, in this environment, my take dollar to soar, oil, gold and stock to collapse.

 

the problem with people is that they dont cut their losses short, they hold till more losses, and that is when cutting is no longer meaningful

cut losses fast, you will be glad, sell to strength.

for instance, if u go casino today and the frist hour you keep losing, do u carry on or do u get out and come back another day? 

most ppl stay and fight, so they end up losing more, u must know that day , star is not with u, so it is more sensible to stop and come back another day to bet. 

u know the saying, if u keep doin the same thing, u got the same result. Do something different, cut first , talk later, dont hope again hope, the mkt got further to drop.

those BBB are ready to attack Spain and Italy, they are weak now, ECB and IMF also cannot save them. even if they can, that is just for a while only, no longer term solution

remember 2008, always remember 2008., always remember 2008. 

be realistic, dont self comfort that thing will be fine, hope authority can solve the problem.

but i see thing to blow up 2012. we still got some precious time left. hope so. 

 

 

u mean sg dollar or us dollar ? :P

andreytan      ( Date: 06-Aug-2011 15:56) Posted:   You are your very own good news and bad news. But if you want to trade, fine, but if you think buy value to long, wait a while first. if you have gone thro 2008, you know, when ,right? as politician kick the can down the road, the can didn't disappear,in fact, it grow bigger, so after kicking and kicking. now cannot kick anymore, because now the can grow so big that it got to roll over ten time around the world , so the day of reackoning have arrived. cash is king, in this environment, my take dollar to soar, oil, gold and stock to collapse.

 

 

You are your very own good news and bad news.

But if you want to trade, fine, but if you think buy value to long, wait a while first. if you have gone thro 2008, you know, when ,right?

as politician kick the can down the road, the can didn't disappear,in fact, it grow bigger, so after kicking and kicking.

now cannot kick anymore, because now the can grow so big that it got to roll over ten time around the world , so the day of reackoning have arrived.

cash is king, in this environment,

my take dollar to soar,

oil, gold and stock to collapse. 

 

 

i think all's up to the G7 finance ministers meeting in a days as spoken by the italian leader..

Gaecia      ( Date: 06-Aug-2011 15:35) Posted: You mean S& P can reinstate  the US rating with an 'upgrade' or an 'un-downgrade' term (upon further re-assessment should it happen)? Who knows, maybe S& P has dyscalculia. That will  be so  interesting.

 

You mean S& P can reinstate  the US rating with an 'upgrade' or an 'un-downgrade' term (upon further re-assessment should it happen)? Who knows, maybe S& P has dyscalculia.

That will  be so  interesting.   

 

The source also said S&P didn't give enough credit for the debt-ceiling compromise, which paved the way for more than $2 trillion in spending cuts over the next 10 years. However, one of S&P's explicit criticisms of the compromise was that it didn't address the biggest drivers of the nation's debt -- Social Security and Medicare -- and didn't allow for additional tax revenue.

 

Told they had a $2 trillion error in their calculation of US deficits over a 10-year period, Standard and Poor’s scrambled in the afternoon Friday to reconsider its historic decision to downgrade the United States government. Sources familiar with the situation say S& P had to rouse several of its European committee members from bed to hold an emergency conference call as markets headed toward their close in the US.

The outcome: the agency affirmed the decision the committee had made just that morning, yanking its triple-A rating from the United States and downgrading it one notch to AA+.
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I think US market will fall next week due to downgrade, they want to argue to prevent downgrade, in the end also lose, means big problem already. First ppl bet that US won't default, but their debt deal also like shit. They bet again ratings wont be cut because of debt deal and assurance, in the end SnP still downgrad them.

Italy's prime minister's wanting to solve their country's problem also like ai mai ai mai like that..Going to be like greece asking help and money kept pumping in endlessly.

Next Tuesday is a holiday, then come thursday jobless claims again.

I feel very bearish now. Will wait till fire settle down before going in to buy cheap stocks again. Probably the week after and see how things go.

Enjoy the weekend! Enjoy the fireworks!!!!!!

 

Ironically , S& P are also the ones who placed triple A credit rating for those assets backed securities which indirectly caused the sub prime crisis.

artng25      ( Date: 06-Aug-2011 12:25) Posted: S& P's Beers: It was our duty to downgrade the U.S. By Walter Brandimarte | Reuters  –  23 minutes ago " We take our responsibilities very seriously, and if at the end of our analysis the committee concludes that a rating isn't where we believe it should be, it's our duty to make that call," David Beers told Reuters in an interview. Government sources have also accused the agency of making a $2 trillion error in its calculations about U.S. finances, and later removing that number from its estimates while sticking to its plan to cut the U.S. credit rating. Beers, who is the head of sovereign ratings at S& P, acknowledged that the agency's decision was highly influenced by a change in Washington's " political dynamics" that hampered members of Congress from reaching a more comprehensive plan to cut the deficit. " From the standpoint of fiscal policy, the process has weakened and became less predictable than it was," he said Any change in those calculations would have been taken into consideration by S& P's committee before its rating decision was made public, Beers said. Beers said one contributing element to the decision was the downward revision of U.S. GDP numbers a week ago. The data showed that the U.S. economy almost stalled in the first half of the year. " The recession was deeper than what everybody thought a year ago and we think that this raises the possibility that the recovery will continue to be weak."

 

No confirmation sign yet.. so sit back and relax... 

 

When there is down grade. DOW chances of going up is bright, enjoy d roller coaster ride.

 

I dont know why invester base on credit rating that is behind the curve.

some major mkt player already have their own guy doing the job of rating and give these credit agency the miss.

very soon , all institution will follow, and all these credit agency have to downgrade themselve to " JUNK OF JUNK" ..lol 

 

This news is expected by invester, but the US govt debt is still popular with invester.

i dont think mkt will react vigorously.

but Monday is still selling mode, cause Tuesday is a holiday.

this news is break over the wkend, that is why during crises, it is disadvantage to hold over the wkend. 

 

S& P's Beers: It was our duty to downgrade the U.S.

By Walter Brandimarte | Reuters  –  23 minutes ago

" We take our responsibilities very seriously, and if at the end of our analysis the committee concludes that a rating isn't where we believe it should be, it's our duty to make that call," David Beers told Reuters in an interview.

Government sources have also accused the agency of making a $2 trillion error in its calculations about U.S. finances, and later removing that number from its estimates while sticking to its plan to cut the U.S. credit rating.

Beers, who is the head of sovereign ratings at S& P, acknowledged that the agency's decision was highly influenced by a change in Washington's " political dynamics" that hampered members of Congress from reaching a more comprehensive plan to cut the deficit.

" From the standpoint of fiscal policy, the process has weakened and became less predictable than it was," he said

Any change in those calculations would have been taken into consideration by S& P's committee before its rating decision was made public, Beers said.

Beers said one contributing element to the decision was the downward revision of U.S. GDP numbers a week ago. The data showed that the U.S. economy almost stalled in the first half of the year.

" The recession was deeper than what everybody thought a year ago and we think that this raises the possibility that the recovery will continue to be weak."

 

S& P won't admit their mistakes. IF it's their mistakes, then the previous downgrades all come to question.. just take the downgrade news in your stride and dont hope so much for the best.