The S&P pigheaded downgrade of the US sovereign ratings was intended to show the weakness in the US economy, technically or politically. Unfortunately, the impact so far has been capital flight to safety - the US Treasury bonds! With more capital flying to the US T bonds, the cost of borrowing by Uncle Sam has only being seriously reduced - where else will the capital go?
The folks at S&P would have the world believe they have a foundation, beyond Godiness, to their Friday evening decision, but no rational technical analysts will be able to explain their decision. The US economy remains the bedrock of the global economy, accounting for some odd 20% of the total global gdp. It is the foundation off all global sovereign and non sovereign ratings. It is the gold standard, the constant in all ratings calculations. If it is changed, the entire global rating structure changes with it!
So downgrading the US ratings is perhaps the most stupid irony of the ongoing global financial crises that started in the 1980s. The global financial system continues in a flux of realignment, reset, and rebalancing. While there have been obvious winners, the loosers, including failed financial institutions and a growing array of investors , of this outcome of continued assault on sanity, in the name of deregulations are the teaming masses of unemployed across the globe.
As S&P was busy brewing the scheme of a downgrade, London was setting up for its own broil. To all my friends in England, I pray for your safety...
The folks at S&P would have the world believe they have a foundation, beyond Godiness, to their Friday evening decision, but no rational technical analysts will be able to explain their decision. The US economy remains the bedrock of the global economy, accounting for some odd 20% of the total global gdp. It is the foundation off all global sovereign and non sovereign ratings. It is the gold standard, the constant in all ratings calculations. If it is changed, the entire global rating structure changes with it!
So downgrading the US ratings is perhaps the most stupid irony of the ongoing global financial crises that started in the 1980s. The global financial system continues in a flux of realignment, reset, and rebalancing. While there have been obvious winners, the loosers, including failed financial institutions and a growing array of investors , of this outcome of continued assault on sanity, in the name of deregulations are the teaming masses of unemployed across the globe.
As S&P was busy brewing the scheme of a downgrade, London was setting up for its own broil. To all my friends in England, I pray for your safety...
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