S&P downgrade is a non-event people

[scheming daemons]

A) The other two ratings agencies still have the country at AAA

B) S&P's $2 trillion math error is getting major play, and by Monday, don't be surprised if S&P reneges and keeps the rating AAA.

C) Even if S&P doesn't fix their mistake, with a whole weekend to hear about it, markets will take into account S&P's mistake.


The financial impact of this will be very minor, if at all.


The political impact will be based on how well the WH and Dems can out-spin Fox News and the like. The S&P report makes it clear that the reason for the downgrade is the failure to let the Bush tax cuts expire. We need to make sure the world hears that... over and over and over and over again.

[RainDog]

1. so does that mean the person who placed the one billion dollar bet on a downgrade

doesn't get to collect?

[scheming daemons]

2. Oh, they'll collect... but macro-economically speaking, it's a non-event

[flamingdem]

3. It's going to be one spinning weekend that's for sure

Romney already blaming it on Obama ..

[Poll_Blind]

4. Tell that to the market on Monday! Spin while ye can!

PB

[Dark]

5. Expect to hear, now til nov. 2012, how the black man broke the U.S. treasury

and destroyed our credit.

Beyond that, the impact will probably be some points on the dow lost monday, with all that's already happened.

[DJ13]

6. The financial impact of this will be very minor, if at all.

That depends.

Many investment funds are required to only hold AAA rated securities.

I guess the potential impact depends on which rating agency the firms use in grading securities.

[Dawson Leery]

7. S&P also downgraded Japan's rating to AA and it did not effect them much at all.

[Major Hogwash]

8. Oh, yeah?? Tell that to ceiling cat!!!

He just jumped to his death to the floor from out of the false ceiling!!!!

No, wait.
No, he's okay.
Landed on all 4 fours.

[Ruby the Liberal]

9. It isn't a non-event if it kicks congress into gear on revenues.