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ralphmalph

S&p Revises Us Outlook To Negative

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Gold currently at around £915/oz - must be close to all time Sterling highs.

It's pretty clear that the new default response to problems in the Western economies is to print money; hence Bad News = Rising Markets on expectation of even more currency debasement.

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And about time too... Been waiting for the US to have its time in the hurt locker...

I was recently over in there on vacation and watching them whine on the news about gas at $4 a gallon really did cheese me off. It's £6 a gallon over here, aka $10.

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This sounds familiar, the exact same thing happened to the UK. All the US needs is some kind of Plan to stabilise things and they will be immediately upgraded to stable again.

Good for gold and other hard assets. Both major world currencies seem to be stuffed short / medium term. Don’t see the problems EUR and USD face being fixed very quickly will probably be more seesaw action in the meantime as everyone focuses on one side and then the other.

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This sounds familiar, the exact same thing happened to the UK. All the US needs is some kind of Plan to stabilise things and they will be immediately upgraded to stable again.

Good for gold and other hard assets. Both major world currencies seem to be stuffed short / medium term. Don’t see the problems EUR and USD face being fixed very quickly will probably be more seesaw action in the meantime as everyone focuses on one side and then the other.

That's the thing - there is no plan, and it doesn't look like there's the political will to produce one.

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Interestingly, for what is nominally a bad news event for the US Dollar, the pound did not strengthen vs the dollar - and in fact has slid downwards!

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Euro and Sterling SHARPLY down on the news. :unsure:

:lol::lol::lol::lol::lol:

If the US stop buying those who export there are in BIG trouble.

Ediot:

Sterling in a Major SELL OFF---ITS GONG DOWN FAST:

Last Trade:

1.6178

Euro may drop below 1.42..................................................panic selling

Edited by Realistbear

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Euro almost at 1.415!!!!!!!!!!!!!!

This is a hige meltdown--Sterling down almost 1% in miniutes.

What's gold doing???

Edit: KITCO nont vailabale "due to excessive traffic"

Anyone got the gold spot? $ is soaring vs. all the majors right now. Some massive shorts on £ and Euro freaking the market as $ are being mopped up globally.

Edited by Realistbear

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Euro almost at 1.415!!!!!!!!!!!!!!

Hardly surprising, with Germany now openly talking about a Greek debt restructuring before the summer, and the election results in Finland.

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Euro and Sterling SHARPLY down on the news. :unsure:

:lol::lol::lol::lol::lol:

If the US stop buying those who export there are in BIG trouble.

Ediot:

Sterling in a Major SELL OFF---ITS GONG DOWN FAST:

Last Trade:

1.6178

Euro may drop below 1.42..................................................panic selling

Too right, if the US goes, so does everyone else. And the US can't keep buying on tick forever.

Of course, the fact this would be bad is has no bearing on whether the US goes broke or not, if it's gonna blow, it's gonna blow. So you better be ready for the fallout.

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Euro almost at 1.415!!!!!!!!!!!!!!

This is a hige meltdown--Sterling down almost 1% in miniutes.

What's gold doing???

Edit: KITCO nont vailabale "due to excessive traffic"

Anyone got the gold spot? $ is soaring vs. all the majors right now. Some massive shorts on £ and Euro freaking the market as $ are being mopped up globally.

Gold in the dollar hit $1496 just over an hour ago, down a little then back up to $1493.80 as we speak. We'll see $1500 shortly. Didn't take long, even I'm surprised! :o

It would appear gold is behaving independently of the dollar, in fact the dollar up/gold down (and vice versa) was broken over a year ago. This shows that there is a flight to safety going on into gold and the dollar, with many still mistakenly believe the dollar to be safe (or they are just playing the game while they still can).

http://www.usagold.com/gold-price-forex.html

Edited by General Congreve

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This may be why Bill Gross chnaged course and said US Treasuries were the buy. Don't get it as a potential downgrade by Moodys would cause IR to rise in the US.

Could be a scam with Moodys being used to frighten the market and pull the rug from under the commodities markets to revalue the $--but why would the US want that as they have a firm "strong dollar" (weak dollar) policy.

China's rumblings and Goldman's commodities frighteners might be something to do with it as a commodities and metals collapse would send money into US $ and Treasuries. That is, if a recession is coming--if a recession is not coming then treausures are a SELL.

I think a recession is coming--a bad one--and treasuries may be the place to be. The Forex

be a good bellwether.

£ plunge has suddenly halted--must be some heavy intervention going on as the drop on the Moody's news was "off a cliff" straight down.

Edited by Realistbear

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http://uk.finance.yahoo.com/news/U-S-outlook-downgrade-euro-reuters_molt-3411009272.html?x=0

"On a day when sovereign debt troubles have returned to haunt the euro, S&P's announcement added salt to the wound," said Kathy Lien, director of research at GFT in New York. "Investors were risk averse going into the NY open and will now remain cautious or nervous throughout the North American trading session."

Looks like a market reversion to long term trend--when the US has bad news the rest of the world gets extremely bad news. When the world's largest economy slows the rest follow--only more so. And Japan seems to be in a bit of a state too--add the US + Japan slowing down and recession by the 3rd Q folks.

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http://uk.finance.yahoo.com/news/Oil-drops-S-P-cuts-U-S-reuters_molt-4003734180.html?x=0

NEW YORK (Xetra: A0DKRK - news) (Reuters) -
Oil fell more than $2 on Monday
after ratings agency S&P cut its U.S. credit outlook to negative, adding to losses sparked by top exporter Saudi Arabia saying weak demand had forced it to reduce crude output.

Rumble rumble...........................

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Plunge Protection Team are on stand by.

This isn't the big one, yet though.

Edit: Clarity.

it matters a lot though because it will raise the cost of debt.

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This may be why Bill Gross chnaged course and said US Treasuries were the buy. Don't get it as a potential downgrade by Moodys would cause IR to rise in the US.

Could be a scam with Moodys being used to frighten the market and pull the rug from under the commodities markets to revalue the $--but why would the US want that as they have a firm "strong dollar" (weak dollar) policy.

China's rumblings and Goldman's commodities frighteners might be something to do with it as a commodities and metals collapse would send money into US $ and Treasuries. That is, if a recession is coming--if a recession is not coming then treausures are a SELL.

I think a recession is coming--a bad one--and treasuries may be the place to be. The Forex

be a good bellwether.

£ plunge has suddenly halted--must be some heavy intervention going on as the drop on the Moody's news was "off a cliff" straight down.

But if a recession is coming that means more borrowing (from the FED :lol: ) to keep the economy stimulated and less tax take to pay off the borrowing (they will just be digging a deeper hole). Of course, all this 'borrowing' is inflationary. So stagflationary recession/depression it is. Making the $ and treasuries the worst place to be, especially when something finally gives and the treasuries bubble bursts.

EDIT: And you are wrong on Bill Gross AGAIN. Someone corrected you on this last time you got it wrong. He went against the crowd and sold out of US treasuries along with Warren Buffett. See this article:

http://www.investmentweek.co.uk/investment-week/news/2044428/blog-buffett-gross-money-debt

Quote from article: Warren Buffett, Bill Gross and UK fund stars including Jim Leaviss have seen their warnings on US treasuries proved right as S&P downgraded its outlook for US credit.

Realist Bear? Barely Reliable more like. :lol:

Edited by General Congreve

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Interesting artical on The Curious Capitalist:

http://curiouscapitalist.blogs.time.com/2011/04/18/the-s-p-goes-bearish-on-the-u-s/

Really quite bearish, basically suggests that the US is as capable of going belly up as any other Nation State.

Also check out the second comment at the end of the artical...classic head in the sand mentality it seems.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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