OK, we are down graded: AA+ (Still a long way from F+ guys)

[briansd1]

[quote=pri_dk]
Many people fall into the trap of comparing government debt to personal/consumer debt. There are key differences.

Debt is not always bad, and the situation is not as bad as many make it out to be.

(Don’t agree that debt is not always bad? Then answer this: Why is Rich’s investment firm suggesting that it would be a very smart move for people to refinance into a 30 year loan right now?)[/quote]

Actually the markets like a good amount of debt. Not too much nor too little (the optimum point is debatable). Debts allow us to front-load consumption and investments which immediately enhances growth, and improves future ability to grow, be productive, and service debt. That’s what capitalism is all about.

Now you have a minority who proclaim to be guided by market principles wanting a balanced budget amendment to the Constitution. Doesn’t make much sense.

At that same time, that same minority doesn’t want to restrict access to credit and limit the origination fees charged to low credit-score borrowers.

[eavesdropper]

[quote=afx114]I’m not an economist, so maybe one can explain to me. If the S&P downgrade was such a big deal, why are people still pouring money into US Treasuries, driving it down to very low rates? Is it because the US is still the least worst of many worster options? (Yes, I just said ‘worster’).[/quote]

It’s okay, afx114. The financial crisis has been going on or some time, and the rabid press corps who are covering it for those of us “who don’t understand business” (yes, another priceless Rick Santelli moment on CNBC this morning) are desperate for new adjectives. Word is that they’re offering big bucks for novel descriptive prose that will produce panic in their viewers, and incite them into looting their local Super WalMart stores.

I’m thinking “worster” says it all. In fact, I’m getting my flame thrower out of my kids’ old toy box as we speak…..

As for the reasoning behind the brisk business in U.S. Treasuries? S & P planned it that way, naturally.

[eavesdropper]

[quote=afx114]I’m not an economist, so maybe one can explain to me. If the S&P downgrade was such a big deal, why are people still pouring money into US Treasuries, driving it down to very low rates? Is it because the US is still the least worst of many worster options? (Yes, I just said ‘worster’).[/quote]

It’s okay, afx114. The financial crisis has been going on or some time, and the rabid press corps who are covering it for those of us “who don’t understand business” (yes, another priceless Rick Santelli moment on CNBC this morning) are desperate for new adjectives. Word is that they’re offering big bucks for novel descriptive prose that will produce panic in their viewers, and incite them into looting their local Super WalMart stores.

I’m thinking “worster” says it all. In fact, I’m getting my flame thrower out of my kids’ old toy box as we speak…..

As for the reasoning behind the brisk business in U.S. Treasuries? S & P planned it that way, naturally.

[eavesdropper]

[quote=afx114]I’m not an economist, so maybe one can explain to me. If the S&P downgrade was such a big deal, why are people still pouring money into US Treasuries, driving it down to very low rates? Is it because the US is still the least worst of many worster options? (Yes, I just said ‘worster’).[/quote]

It’s okay, afx114. The financial crisis has been going on or some time, and the rabid press corps who are covering it for those of us “who don’t understand business” (yes, another priceless Rick Santelli moment on CNBC this morning) are desperate for new adjectives. Word is that they’re offering big bucks for novel descriptive prose that will produce panic in their viewers, and incite them into looting their local Super WalMart stores.

I’m thinking “worster” says it all. In fact, I’m getting my flame thrower out of my kids’ old toy box as we speak…..

As for the reasoning behind the brisk business in U.S. Treasuries? S & P planned it that way, naturally.

[eavesdropper]

[quote=afx114]I’m not an economist, so maybe one can explain to me. If the S&P downgrade was such a big deal, why are people still pouring money into US Treasuries, driving it down to very low rates? Is it because the US is still the least worst of many worster options? (Yes, I just said ‘worster’).[/quote]

It’s okay, afx114. The financial crisis has been going on or some time, and the rabid press corps who are covering it for those of us “who don’t understand business” (yes, another priceless Rick Santelli moment on CNBC this morning) are desperate for new adjectives. Word is that they’re offering big bucks for novel descriptive prose that will produce panic in their viewers, and incite them into looting their local Super WalMart stores.

I’m thinking “worster” says it all. In fact, I’m getting my flame thrower out of my kids’ old toy box as we speak…..

As for the reasoning behind the brisk business in U.S. Treasuries? S & P planned it that way, naturally.

[eavesdropper]

[quote=afx114]I’m not an economist, so maybe one can explain to me. If the S&P downgrade was such a big deal, why are people still pouring money into US Treasuries, driving it down to very low rates? Is it because the US is still the least worst of many worster options? (Yes, I just said ‘worster’).[/quote]

It’s okay, afx114. The financial crisis has been going on or some time, and the rabid press corps who are covering it for those of us “who don’t understand business” (yes, another priceless Rick Santelli moment on CNBC this morning) are desperate for new adjectives. Word is that they’re offering big bucks for novel descriptive prose that will produce panic in their viewers, and incite them into looting their local Super WalMart stores.

I’m thinking “worster” says it all. In fact, I’m getting my flame thrower out of my kids’ old toy box as we speak…..

As for the reasoning behind the brisk business in U.S. Treasuries? S & P planned it that way, naturally.

[eavesdropper]

[quote=eavesdropper][quote=afx114]I’m not an economist, so maybe one can explain to me. If the S&P downgrade was such a big deal, why are people still pouring money into US Treasuries, driving it down to very low rates? Is it because the US is still the least worst of many worster options? (Yes, I just said ‘worster’).[/quote]

It’s okay, afx114. The financial crisis has been going on or some time, and the rabid press corps who are covering it for those of us “who don’t understand business” (yes, another priceless Rick Santelli moment on CNBC this morning) are desperate for new adjectives. Word is that they’re offering big bucks for novel descriptive prose that will produce panic in their viewers, and incite them into looting their local Super WalMart stores.

I’m thinking “worster” says it all. In fact, I’m getting my flame thrower out of my kids’ old toy box as we speak…..

As for the reasoning behind the brisk business in U.S. Treasuries? S & P planned it that way, naturally.[/quote]

Oops! Come to think of it, I think I’ve heard “worster” used pretty regularly on “Fox and Friends” to describe Obama as president, Obama as senator, Obama as candidate, Obama’s choice of judges, Obama’s appointees, Obama’s ideas, Obama’s strategies, Obama’s speeches, Obama’s ties….you get the idea. So you can still use “worster”, but you can’t enter it in the competition I mentioned previously. But getting mistaken for Steve Doocy should make up for it…..

[eavesdropper]

[quote=eavesdropper][quote=afx114]I’m not an economist, so maybe one can explain to me. If the S&P downgrade was such a big deal, why are people still pouring money into US Treasuries, driving it down to very low rates? Is it because the US is still the least worst of many worster options? (Yes, I just said ‘worster’).[/quote]

It’s okay, afx114. The financial crisis has been going on or some time, and the rabid press corps who are covering it for those of us “who don’t understand business” (yes, another priceless Rick Santelli moment on CNBC this morning) are desperate for new adjectives. Word is that they’re offering big bucks for novel descriptive prose that will produce panic in their viewers, and incite them into looting their local Super WalMart stores.

I’m thinking “worster” says it all. In fact, I’m getting my flame thrower out of my kids’ old toy box as we speak…..

As for the reasoning behind the brisk business in U.S. Treasuries? S & P planned it that way, naturally.[/quote]

Oops! Come to think of it, I think I’ve heard “worster” used pretty regularly on “Fox and Friends” to describe Obama as president, Obama as senator, Obama as candidate, Obama’s choice of judges, Obama’s appointees, Obama’s ideas, Obama’s strategies, Obama’s speeches, Obama’s ties….you get the idea. So you can still use “worster”, but you can’t enter it in the competition I mentioned previously. But getting mistaken for Steve Doocy should make up for it…..

[eavesdropper]

[quote=eavesdropper][quote=afx114]I’m not an economist, so maybe one can explain to me. If the S&P downgrade was such a big deal, why are people still pouring money into US Treasuries, driving it down to very low rates? Is it because the US is still the least worst of many worster options? (Yes, I just said ‘worster’).[/quote]

It’s okay, afx114. The financial crisis has been going on or some time, and the rabid press corps who are covering it for those of us “who don’t understand business” (yes, another priceless Rick Santelli moment on CNBC this morning) are desperate for new adjectives. Word is that they’re offering big bucks for novel descriptive prose that will produce panic in their viewers, and incite them into looting their local Super WalMart stores.

I’m thinking “worster” says it all. In fact, I’m getting my flame thrower out of my kids’ old toy box as we speak…..

As for the reasoning behind the brisk business in U.S. Treasuries? S & P planned it that way, naturally.[/quote]

Oops! Come to think of it, I think I’ve heard “worster” used pretty regularly on “Fox and Friends” to describe Obama as president, Obama as senator, Obama as candidate, Obama’s choice of judges, Obama’s appointees, Obama’s ideas, Obama’s strategies, Obama’s speeches, Obama’s ties….you get the idea. So you can still use “worster”, but you can’t enter it in the competition I mentioned previously. But getting mistaken for Steve Doocy should make up for it…..

[eavesdropper]

[quote=eavesdropper][quote=afx114]I’m not an economist, so maybe one can explain to me. If the S&P downgrade was such a big deal, why are people still pouring money into US Treasuries, driving it down to very low rates? Is it because the US is still the least worst of many worster options? (Yes, I just said ‘worster’).[/quote]

It’s okay, afx114. The financial crisis has been going on or some time, and the rabid press corps who are covering it for those of us “who don’t understand business” (yes, another priceless Rick Santelli moment on CNBC this morning) are desperate for new adjectives. Word is that they’re offering big bucks for novel descriptive prose that will produce panic in their viewers, and incite them into looting their local Super WalMart stores.

I’m thinking “worster” says it all. In fact, I’m getting my flame thrower out of my kids’ old toy box as we speak…..

As for the reasoning behind the brisk business in U.S. Treasuries? S & P planned it that way, naturally.[/quote]

Oops! Come to think of it, I think I’ve heard “worster” used pretty regularly on “Fox and Friends” to describe Obama as president, Obama as senator, Obama as candidate, Obama’s choice of judges, Obama’s appointees, Obama’s ideas, Obama’s strategies, Obama’s speeches, Obama’s ties….you get the idea. So you can still use “worster”, but you can’t enter it in the competition I mentioned previously. But getting mistaken for Steve Doocy should make up for it…..

[eavesdropper]

[quote=eavesdropper][quote=afx114]I’m not an economist, so maybe one can explain to me. If the S&P downgrade was such a big deal, why are people still pouring money into US Treasuries, driving it down to very low rates? Is it because the US is still the least worst of many worster options? (Yes, I just said ‘worster’).[/quote]

It’s okay, afx114. The financial crisis has been going on or some time, and the rabid press corps who are covering it for those of us “who don’t understand business” (yes, another priceless Rick Santelli moment on CNBC this morning) are desperate for new adjectives. Word is that they’re offering big bucks for novel descriptive prose that will produce panic in their viewers, and incite them into looting their local Super WalMart stores.

I’m thinking “worster” says it all. In fact, I’m getting my flame thrower out of my kids’ old toy box as we speak…..

As for the reasoning behind the brisk business in U.S. Treasuries? S & P planned it that way, naturally.[/quote]

Oops! Come to think of it, I think I’ve heard “worster” used pretty regularly on “Fox and Friends” to describe Obama as president, Obama as senator, Obama as candidate, Obama’s choice of judges, Obama’s appointees, Obama’s ideas, Obama’s strategies, Obama’s speeches, Obama’s ties….you get the idea. So you can still use “worster”, but you can’t enter it in the competition I mentioned previously. But getting mistaken for Steve Doocy should make up for it…..

[CA renter]

[quote=afx114]I’m not an economist, so maybe one can explain to me. If the S&P downgrade was such a big deal, why are people still pouring money into US Treasuries, driving it down to very low rates? Is it because the US is still the least worst of many worster options? (Yes, I just said ‘worster’).

And why is the media associating the current stock slide with the debt downgrade? Isn’t the stock slide due to Europe, unemployment, etc rather than the downgrade? If the downgrade had anything to do with the stock market, shouldn’t we be seeing treasury rates rise while stocks fall?[/quote]

You’d think that everyone would get this. Unfortunately, too many people are unable to think for themselves, so they buy into the “crisis” as it’s explained to them by the MSM.

I totally agree with you about what’s causing the falling stock market. In a world of ugly stepsisters, you only need to be less ugly in order to win a suitor. IMHO, the dollar has been what’s driving markets for the past few years — it’s been intentionally weakened so that they could inflate asset prices to calm everyone down after the “crisis.” Everyone was betting against it by going into other asset classes and currencies, and now that the Euro looks ripe to implode, traders are rushing to reverse their positions. Just a guess, but we’ll see how things turn out.

As I’ve said before, S&P is probably working on behalf of the Fed and U.S. govt by trying to slow down the stampede into the dollar. Next step is another downgrade from another ratings agency, followed by an annoucement of QE3.

[CA renter]

[quote=afx114]I’m not an economist, so maybe one can explain to me. If the S&P downgrade was such a big deal, why are people still pouring money into US Treasuries, driving it down to very low rates? Is it because the US is still the least worst of many worster options? (Yes, I just said ‘worster’).

And why is the media associating the current stock slide with the debt downgrade? Isn’t the stock slide due to Europe, unemployment, etc rather than the downgrade? If the downgrade had anything to do with the stock market, shouldn’t we be seeing treasury rates rise while stocks fall?[/quote]

You’d think that everyone would get this. Unfortunately, too many people are unable to think for themselves, so they buy into the “crisis” as it’s explained to them by the MSM.

I totally agree with you about what’s causing the falling stock market. In a world of ugly stepsisters, you only need to be less ugly in order to win a suitor. IMHO, the dollar has been what’s driving markets for the past few years — it’s been intentionally weakened so that they could inflate asset prices to calm everyone down after the “crisis.” Everyone was betting against it by going into other asset classes and currencies, and now that the Euro looks ripe to implode, traders are rushing to reverse their positions. Just a guess, but we’ll see how things turn out.

As I’ve said before, S&P is probably working on behalf of the Fed and U.S. govt by trying to slow down the stampede into the dollar. Next step is another downgrade from another ratings agency, followed by an annoucement of QE3.

[CA renter]

[quote=afx114]I’m not an economist, so maybe one can explain to me. If the S&P downgrade was such a big deal, why are people still pouring money into US Treasuries, driving it down to very low rates? Is it because the US is still the least worst of many worster options? (Yes, I just said ‘worster’).

And why is the media associating the current stock slide with the debt downgrade? Isn’t the stock slide due to Europe, unemployment, etc rather than the downgrade? If the downgrade had anything to do with the stock market, shouldn’t we be seeing treasury rates rise while stocks fall?[/quote]

You’d think that everyone would get this. Unfortunately, too many people are unable to think for themselves, so they buy into the “crisis” as it’s explained to them by the MSM.

I totally agree with you about what’s causing the falling stock market. In a world of ugly stepsisters, you only need to be less ugly in order to win a suitor. IMHO, the dollar has been what’s driving markets for the past few years — it’s been intentionally weakened so that they could inflate asset prices to calm everyone down after the “crisis.” Everyone was betting against it by going into other asset classes and currencies, and now that the Euro looks ripe to implode, traders are rushing to reverse their positions. Just a guess, but we’ll see how things turn out.

As I’ve said before, S&P is probably working on behalf of the Fed and U.S. govt by trying to slow down the stampede into the dollar. Next step is another downgrade from another ratings agency, followed by an annoucement of QE3.

[CA renter]

[quote=afx114]I’m not an economist, so maybe one can explain to me. If the S&P downgrade was such a big deal, why are people still pouring money into US Treasuries, driving it down to very low rates? Is it because the US is still the least worst of many worster options? (Yes, I just said ‘worster’).

And why is the media associating the current stock slide with the debt downgrade? Isn’t the stock slide due to Europe, unemployment, etc rather than the downgrade? If the downgrade had anything to do with the stock market, shouldn’t we be seeing treasury rates rise while stocks fall?[/quote]

You’d think that everyone would get this. Unfortunately, too many people are unable to think for themselves, so they buy into the “crisis” as it’s explained to them by the MSM.

I totally agree with you about what’s causing the falling stock market. In a world of ugly stepsisters, you only need to be less ugly in order to win a suitor. IMHO, the dollar has been what’s driving markets for the past few years — it’s been intentionally weakened so that they could inflate asset prices to calm everyone down after the “crisis.” Everyone was betting against it by going into other asset classes and currencies, and now that the Euro looks ripe to implode, traders are rushing to reverse their positions. Just a guess, but we’ll see how things turn out.

As I’ve said before, S&P is probably working on behalf of the Fed and U.S. govt by trying to slow down the stampede into the dollar. Next step is another downgrade from another ratings agency, followed by an annoucement of QE3.

[Author]

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