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

[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.

[ucodegen]

[quote pri_dk]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]
Refinancing debt to lower existing debt costs is not the same as getting more debt, so this is not a good example.

Good vs Bad debt is more dependent upon what the debt is used for and what is the return on the debt minus the cost of the debt (net proceeds of the indebtedness)

[ucodegen]

[quote pri_dk]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]
Refinancing debt to lower existing debt costs is not the same as getting more debt, so this is not a good example.

Good vs Bad debt is more dependent upon what the debt is used for and what is the return on the debt minus the cost of the debt (net proceeds of the indebtedness)

[ucodegen]

[quote pri_dk]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]
Refinancing debt to lower existing debt costs is not the same as getting more debt, so this is not a good example.

Good vs Bad debt is more dependent upon what the debt is used for and what is the return on the debt minus the cost of the debt (net proceeds of the indebtedness)

[ucodegen]

[quote pri_dk]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]
Refinancing debt to lower existing debt costs is not the same as getting more debt, so this is not a good example.

Good vs Bad debt is more dependent upon what the debt is used for and what is the return on the debt minus the cost of the debt (net proceeds of the indebtedness)

[ucodegen]

[quote pri_dk]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]
Refinancing debt to lower existing debt costs is not the same as getting more debt, so this is not a good example.

Good vs Bad debt is more dependent upon what the debt is used for and what is the return on the debt minus the cost of the debt (net proceeds of the indebtedness)

[scaredyclassic]

I don’t think the amount of our debt matters aren’t junk bonds moneymakers?

[scaredyclassic]

I don’t think the amount of our debt matters aren’t junk bonds moneymakers?

[scaredyclassic]

I don’t think the amount of our debt matters aren’t junk bonds moneymakers?

[scaredyclassic]

I don’t think the amount of our debt matters aren’t junk bonds moneymakers?

[scaredyclassic]

I don’t think the amount of our debt matters aren’t junk bonds moneymakers?

[The-Shoveler]

Personally, I hope Gold hits 6 thousand per ounce, its a little known fact but the U.S.A. citizens own more gold then the rest of world.
Plus it will create employment opportunities galore.

I think I can make a pile of money selling dry dredges at that point.
Also
The United States holds the largest gold reserve in the world. With 8,133.5 tonnes, the US gold holdings are worth approximately $269.67 billion. This massive gold reserve represents about .9436 an ounce for ever person living in the country. The majority of the American gold is reported to be held in the world famous United States Bullion Depository in Fort Knox, Kentucky, although there is some controversy that suggests otherwise. The remainder of the US reserves are held at the Philadelphia Mint, the Denver Mint, the West Point Bullion Depository and the San Francisco Assay Office.

[The-Shoveler]

Personally, I hope Gold hits 6 thousand per ounce, its a little known fact but the U.S.A. citizens own more gold then the rest of world.
Plus it will create employment opportunities galore.

I think I can make a pile of money selling dry dredges at that point.
Also
The United States holds the largest gold reserve in the world. With 8,133.5 tonnes, the US gold holdings are worth approximately $269.67 billion. This massive gold reserve represents about .9436 an ounce for ever person living in the country. The majority of the American gold is reported to be held in the world famous United States Bullion Depository in Fort Knox, Kentucky, although there is some controversy that suggests otherwise. The remainder of the US reserves are held at the Philadelphia Mint, the Denver Mint, the West Point Bullion Depository and the San Francisco Assay Office.

[The-Shoveler]

Personally, I hope Gold hits 6 thousand per ounce, its a little known fact but the U.S.A. citizens own more gold then the rest of world.
Plus it will create employment opportunities galore.

I think I can make a pile of money selling dry dredges at that point.
Also
The United States holds the largest gold reserve in the world. With 8,133.5 tonnes, the US gold holdings are worth approximately $269.67 billion. This massive gold reserve represents about .9436 an ounce for ever person living in the country. The majority of the American gold is reported to be held in the world famous United States Bullion Depository in Fort Knox, Kentucky, although there is some controversy that suggests otherwise. The remainder of the US reserves are held at the Philadelphia Mint, the Denver Mint, the West Point Bullion Depository and the San Francisco Assay Office.

[The-Shoveler]

Personally, I hope Gold hits 6 thousand per ounce, its a little known fact but the U.S.A. citizens own more gold then the rest of world.
Plus it will create employment opportunities galore.

I think I can make a pile of money selling dry dredges at that point.
Also
The United States holds the largest gold reserve in the world. With 8,133.5 tonnes, the US gold holdings are worth approximately $269.67 billion. This massive gold reserve represents about .9436 an ounce for ever person living in the country. The majority of the American gold is reported to be held in the world famous United States Bullion Depository in Fort Knox, Kentucky, although there is some controversy that suggests otherwise. The remainder of the US reserves are held at the Philadelphia Mint, the Denver Mint, the West Point Bullion Depository and the San Francisco Assay Office.

[Author]

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