Global markets fell sharply yesterday!

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Global markets fell sharply yesterday!
Aug 11, 2011 01:47	#11
DREAMLIFE Points: Join Date: Sep 5, 2007 Status: Offline	Quote: Originally Posted by MARRIE It's a cyclical thing and so is the cost of the lesson. The pattern of up and down is the way it is and it's way that never ends. I wish that China and other creditors had learnt a lesson from this no matter how much the cost was. Bill Miller, Chairman and Chief Investment Officer of Legg Mason Capital Management, wrote “The downgrade by Standard & Poor’s of US sovereign debt, from triple A to double A plus, was precipitate, wrong and dangerous.” I don’t know why he condemned S&P for downgrading the US sovereign debt. But I believe that S&P did a right thing. S&P was the innocent child who told the truth “The emperor is wearing nothing at all”. Everyone knows what will happen if the USA keeps increasing its debt ceiling but doesn’t pay anything to its creditors. But they never speak it out because they believe that the USA can handle this. Can the USA handle it? I doubt about it. The debt default might have happened if the two parties failed to reach an agreement.

Aug 11, 2011 01:47

#11

DREAMLIFE
Points:
Join Date: Sep 5, 2007
Status: Offline

Quote:

Originally Posted by MARRIE

It's a cyclical thing and so is the cost of the lesson. The pattern of up and down is the way it is and it's way that never ends.

I wish that China and other creditors had learnt a lesson from this no matter how much the cost was. Bill Miller, Chairman and Chief Investment Officer of Legg Mason Capital Management, wrote “The downgrade by Standard & Poor’s of US sovereign debt, from triple A to double A plus, was precipitate, wrong and dangerous.”

I don’t know why he condemned S&P for downgrading the US sovereign debt. But I believe that S&P did a right thing. S&P was the innocent child who told the truth “The emperor is wearing nothing at all”.

Everyone knows what will happen if the USA keeps increasing its debt ceiling but doesn’t pay anything to its creditors. But they never speak it out because they believe that the USA can handle this. Can the USA handle it? I doubt about it. The debt default might have happened if the two parties failed to reach an agreement.

Aug 11, 2011 22:58	#12
PSYCHIATRIST Points: Join Date: Jul 22, 2008 Status: Offline	Probably traders need to earn more pocket money by making the graphics up and down. Moving averages shows selling off trend and Macro layers haven't shown any postitive indicators. It's a pure game...

Aug 11, 2011 23:35	#13
BOBERT Points: Join Date: Jan 1, 2009 Status: Offline	All the pieces of Armageddon are aligning. The endgame is near.

Aug 12, 2011 04:15	#14
LARRYBOY Points: Join Date: Apr 10, 2009 Status: Offline	Thank God, no more bills to pay!

Aug 13, 2011 21:52	#15
BOBERT Points: Join Date: Jan 1, 2009 Status: Offline	As Warren Buffet once said "trading in derivatives is akin to burying your grandfather in a rented tuxedo". Unfortunately there will always be bills to pay Larry. He also said "nobody knows who's swimming naked until the tide goes out". The tide is now receding and it wont be a pretty sight.

Aug 14, 2011 22:08

#16

JIMMYB
Points:
Join Date: Feb 7, 2007
Status: Offline

The SEC has launched an investigation on S&P after it downgraded the US debt from Three A to 2 plus A. The focus is “insider trading”. The SEC wants to know how many S&P staff knew the US debt credit rating would have been downgraded before S&P announced it. According to the US law, those who interfere in insider trading will be fined 1 million USD and put into jail for 10 years at most.

Actually, the US Treasury pointed that there was a 2 trillion mistake in S&P’s calculations just after SP downgraded the US debt credit rating from AAA to AA+. But S&P immediately responded that 2 trillion math mistake wouldn’t change the result.

Surely, the US is mad about S&P for downgrading the US debt credit rating. Someone called the SEC’s investigation “revenge” on S&P.

Aug 15, 2011 00:36	#17
BOBERT Points: Join Date: Jan 1, 2009 Status: Offline	Nothing will be achieved by shooting the messenger Jimmy. The message will still remain.

Aug 15, 2011 01:15	#18
JIMMYB Points: Join Date: Feb 7, 2007 Status: Offline	Quote: Originally Posted by BOBERT Nothing will be achieved by shooting the messenger Jimmy. The message will still remain. Exactly, Bobert! Even the SRC finds out the proof, the result will have not changed.

Aug 16, 2011 22:11	#19
ICEBERG Points: Join Date: Sep 10, 2007 Status: Offline	Quote: Originally Posted by JIMMYB Exactly, Bobert! Even the SRC finds out the proof, the result will have not changed. Jimmyb, the US still gets a triple A credit rating, given by Fitch Ratings. Some people are still confident in the the US.

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