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orange
08-16-2011, 03:57 AM
08-07-2011

S and P head says it may take 18 years to repair the Obama Damage to credit rating:

(The Hill) — John Chambers, the chairman of Standard & Poor’s sovereign debt ratings, on Sunday estimated that it could take between 9 and 18 years for the nation to regain its AAA credit rating.

Chambers said the credit agency could further downgrade the national rating depending on whether President Obama and congressional leaders can agree on reducing the deficit.

Chambers said “it could take a while” for the U.S. to regain its perfect credit rating.

That's interesting - I predict it could take between 9 and 18 days for the world to put S & P on Ignore.

S&P Downgraded in Treasury Trading After Upgrading Communist Rule in China
By Zeke Faux and John Detrixhe - Aug 15, 2011 6:02 PM MT

Eleven days after lowering the credit rating on the U.S. for the first time, Standard & Poor’s is suffering a downgrade among global investors as American bonds are proving world beaters -- undermining S&P’s mathematical assumptions -- and prompting disbelief among political scientists months after the company upgraded China because of the stability fostered by Communist Party rule.

Since S&P, the New York-based subsidiary of McGraw-Hill Cos., dropped the U.S. to AA+ from AAA on Aug. 5, the yield on the 10-year Treasury note, a benchmark for everything from home mortgages to car loans, has declined to as low as 2.03 percent from a high this year of 3.77 percent, with American debt on pace in August for the biggest monthly gain since December 2008. Interest rates on American bonds are lower today than on most of the countries with AAA ratings by S&P and the Treasury recently financed its outstanding debt at the lowest cost ever.

If anything, the decision from S&P, the largest ratings provider, resulted in an upgrade of U.S. securities as the American bond market outperformed world bond indexes during the period since the downgrade by S&P. Moody’s Investors Service and Fitch Ratings, the two next biggest rating companies, affirmed their AAA rankings on the U.S.

“The market has upgraded U.S. Treasuries,” said Andrew Johnson, the head of investment-grade fixed-income in Chicago at Neuberger Berman Fixed Income LLC, which oversees $85 billion. “Treasuries are still where people run to hide at least temporarily and that’s what we’ve seen over the past week.”

...

While S&P’s downgrade contributed to an equity rout that erased about $6.1 trillion from global stocks between July 26 and Aug. 12, the bond market responded by driving up prices and sending yields to record lows. Yields on 10-year U.S. Treasuries, which drop when demand rises, closed at 2.11 percent on Aug. 10, a percentage point below the 3.1 percent yield on AAA rated French debt and two points below Belgian bonds’ 4.1 percent yield.

Buyers lined up for U.S. debt at last week’s auctions. The Treasury paid a record-low average yield of 2.13 percent on $72 billion of 10- and 30-year notes and bonds, saving taxpayers $647 million in interest payments during the life of the debt, according to data compiled by Bloomberg.

‘Risk-Free’
“The market is saying S&P’s rating decision is wrong,” Edward Marrinan, the head of macro credit strategy at RBS Securities in Stamford, Connecticut, said in a telephone interview on Aug. 10. “The Treasury bond is still seen as the ultimate risk-free security.”


read more: http://www.bloomberg.com/news/2011-08-16/s-p-downgraded-in-treasury-trading-after-upgrading-communist-rule-in-china.html

orange
08-16-2011, 04:10 AM
While S&P’s downgrade contributed to an equity rout that erased about $6.1 trillion from global stocks between July 26 and Aug. 12...

... in America, that equity has all returned, by the way.

BucEyedPea
08-16-2011, 07:18 AM
Marc Faber says differently longer term. The market may not be done speaking. I also wonder if the Plunge Protection Team had a role here? But it's nice to see a progressive value the market for a change. Politics does that to people.

Hey orange! It was good to see you on the big screen. I didn't know you were also an actor?

orange
08-16-2011, 11:38 AM
Hey orange! It was good to see you on the big screen. I didn't know you were also an actor?

"Born To Be Free" or a Clint Eastwood revival?

BucEyedPea
08-16-2011, 11:52 AM
"Born To Be Free" or a Clint Eastwood revival?

No, Rise of the Planet of Apes, silly! There was an orangutane in a supporting role. I immediately thought of you!

Go see it. It was AWESOME!

orange
08-16-2011, 12:12 PM
Er, that reminds me.

Always remember and never forget, "ape shall not kill ape."

Stewie
08-16-2011, 04:40 PM
What a narrow-minded and disingenuous article. Are there any correlating financial events going on that might cause US bonds to rise? It's no wonder people read this tripe, believe it, and wonder why their investments are in the toilet.

petegz28
08-16-2011, 05:32 PM
At this point it seems to be nothing more than short covering. The market sold off again today. We've hit the first fibonaci retracement and sold off today. This article is completely ignorant.

petegz28
08-16-2011, 05:33 PM
What a narrow-minded and disingenuous article. Are there any correlating financial events going on that might cause US bonds to rise? It's no wonder people read this tripe, believe it, and wonder why their investments are in the toilet.

Flight to safety is the only reason our bonds went up.

Mr. Kotter
08-16-2011, 05:38 PM
Flight to safety is the only reason our bonds went up.

So, Treasury Bonds issued by the government are safe?

Heh LMAO

Stewie
08-16-2011, 05:39 PM
So, Treasury Bonds issued by the government are safe?

Heh LMAO

Do you understand the bond market at all?

My guess is "not at all."

petegz28
08-16-2011, 06:28 PM
So, Treasury Bonds issued by the government are safe?

Heh LMAO

JFC....you're hopeless....:banghead:

petegz28
08-16-2011, 06:29 PM
Do you understand the bond market at all?

My guess is "not at all."

It's like he hasn't paid attention to god damn thing

HonestChieffan
08-16-2011, 06:42 PM
It's like he hasn't paid attention to god damn thing

Give the guy a break. He wouldnt know a muni bond from James.

orange
08-22-2011, 10:23 PM
Deven Sharma to step down as S&P president

(2011-08-22) - Deven Sharma will step down as president of ratings agency Standard & Poor's to work on the company's strategic portfolio review before leaving the company at the end of the year.

Sharma will be replaced as president of the ratings agency by Douglas Peterson, chief operating officer of Citibank effective September 12, S&P's parent company McGraw-Hill Companies Inc said in a statement.

The company said it began a search for a new president for S&P after the company split S&P into two separate organizations at the end of last year.

The Financial Times, which first reported news of Sharma's resignation, said his resignation is not related to S&P's downgrade of the United States' credit rating or reports that the agency is being probed by the U.S. Justice Department in connection with its ratings of mortgage securities.

S&P has been under fire from lawmakers, market players and the U.S. Treasury Department since its decision to cut the U.S. credit rating earlier this month, and just last week, news emerged that the Justice Department is investigating the firm over its actions on mortgages leading up to the financial crisis.

The board of McGraw-Hill Companies made the decision to replace Sharma at a meeting where it also discussed its ongoing strategic review on Monday, the Financial Times said.

McGraw-Hill directors and executives met on Monday with Jana Partners LLC, a hedge fund, and the Ontario Teacher's Pension Fund to hear their arguments that the company should be broken up.

(Reporting by Abhishek Takle in Bangalore; Editing by Gary Hill)

© Copyright 2011, Reuters

http://www.publicbroadcasting.net/wbaa/news.newsmain/article/0/13/1843569/Top.Stories/Deven.Sharma.to.step.down.as.S.and.P.president

orange
08-22-2011, 10:24 PM
The Financial Times, which first reported news of Sharma's resignation, said his resignation is not related to S&P's downgrade of the United States' credit rating or reports that the agency is being probed by the U.S. Justice Department in connection with its ratings of mortgage securities.


http://blog.seattlepi.com/viewfromthebleachers/files/2011/02/debt-problem-Golden-Gate-Bridge.jpg