So the U.S.'s debt is downgraded because it's supposedly now riskier, and in response everything else goes down in value while the debt that just got downgraded becomes more valuable because it is a "safe haven".
And that old doomed dollar...it's up too.
It's sort of silly really.
What Would A Martian Think?
Moderator: Global Moderator
What Would A Martian Think?
Q: “Do you have funny shaped balloons?”
A: “Not unless round is funny.”
A: “Not unless round is funny.”
Re: What Would A Martian Think?
Silly, but just as Harry Browne predicted.
Re: What Would A Martian Think?
Thus proving that the ratings agencies are absolutely useless, particularly when it comes to rating sovereign debt.
Re: What Would A Martian Think?
I heard a great quote today on Bloomberg radio on the way in to work: "US treasuries are the least dirty shirt of all the dirty shirts in the drawer."
"I came here for financial advice, but I've ended up with a bunch of shave soaps and apparently am about to start eating sardines. Not that I'm complaining, of course." -ZedThou
Re: What Would A Martian Think?
It looks as though the market reaction is about Europe, not so much the U.S. Does anyone take S&P ratings seriously anyway? Seems like everything is right on schedule as it's a race to debase. USDX means nothing as it's a relative scale, not an absolute scale. All currencies are devaluing against gold in order to push economic growth, gain export advantage, or both. If the martians looked at the 1930s, it looks strikingly similar.
Re: What Would A Martian Think?
Good point.Clive wrote: Aren't there now some (many?) states with a higher credit rating than the entire country's credit rating.
"All men's miseries derive from not being able to sit in a quiet room alone."
Pascal
Pascal
Re: What Would A Martian Think?
Nothing I say should be construed as advice or expertise. I am only sharing opinions which may or may not be applicable in any given case.