Letting The Days Go By/Let The Water Hold Me Down
Letting The Days Go By/Water Flowing Underground
Into The Blue Again/After The Money’s Gone
Once In A Lifetime/Water Flowing Underground.
Same As It Ever Was…Same As It Ever Was… – Talking Heads
S&P downgrades US debt. I’ll just start by saying I’m so thankful I don’t do TV where I’d be forced to listen/debate/comment this development ad nauseum. Rather, I’ll just shoot you subscribers out a quick note saying — just ignore this S&P downgrade nonsense. It might hit the Treasury markets early Monday as some investors end up blindsided by this news. But more likely this has already been priced in at least to a large extent. The stock markets might or might not get hit or rally big or just flatline Monday. Seriously. Did you see the action last week with those 5% intraday market swings? While the mainstream media and the pundits out there will blame a sell off on the S&P downgrade there might have been a big sell off waiting for us Monday anyway. More likely, I also expect that the markets will at some point rally and perhaps rally hard on Monday, even if the markets are panicked early.
Here’s something I wrote about S&P a few months ago, which they read and got upset at me over even sending me an email trying to get me to change my article:
Don’t panic and sell over the revelation from S&P that there’s some concern about the ability for the US to endlessly borrow trillions of dollars from foreign and domestic corporations and private citizens that will have to eventually be paid back by our children or our children’s children.
These idiots at S&P are owned by a old-school publishing company, McGraw-Hill. In fact, I’ve worked on shorting these ratings companies, as I’ve noted in the past in my newsletters, because they are complicit and guilty of much of the fraud and corruption that caused the financial crisis. You do realize that S&P rated subprime assets as AAA…like the US government is today! Much of those subprime assets ended up being worth less than 10 cents on the dollar less than a year after issuance.
One thing to remember about this S&P budget nonsense is that these guys aren’t even acknowledging the nearly 10 trillion dollars in off-balance sheet bailouts for FNM and FRE and the housing industry that were pumped through our government’s actual budgets in just the last thirty-six months. —
Cody here again in real-time. I’ll talk more about this stuff on Monday if we need to, but mainly, my stance at this point is: “Move along, move along folks. Nothing to see here. Move along.”
Ie, same as it ever was.