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S&p To Downgrade U S

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On BBC news just now the correspondent from US said they have heard from ABC news that the White house is preparing for a downgrade by standard and poors. Did say it was uncormifrmed though.

Maybe the markests already suspected this was coming and priced it in over the last couple of days.

Edited by Pent Up

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Was just about to post this. Blimey

Anyone on a tracker mortgage in the UK should be sphincter-winking right now, but i suspect most are too busy watching X-Factor and are totally oblivious to it.

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Was just about to post this. Blimey

Anyone on a tracker mortgage in the UK should be sphincter-winking right now, but i suspect most are too busy watching X-Factor and are totally oblivious to it.

But we are a "safe haven" now. Our bond yields will fall in the flight to safety. This could keep rates low here.

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What's the worry, Obama was on TV a couple of days ago stating the US can afford it's debts. He didn't add as long as it can keep borrowing money at a ever increasing rate to pay it's ever increasing interest but I was convinced the plan would work and now talks of a downgrade.

Next I'll be seeing claims debt isn't wealth.

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But we are a "safe haven" now. Our bond yields will fall in the flight to safety. This could keep rates low here.

Given our links to the US I doubt that. If anything the shiny stuff is likely to rocket from here*

*I have no money in gold/silver!!

Edited by the stig

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2213:

ABC says Standard & Poor's official reasons for downgrade US debt will be the political confusion surrounding the process of raising the debt ceiling, and a lack of confidence that the political system will be able to agree to more deficit reduction. A source told the US network that Republicans saying that they refused to accept any tax increases as part of a larger deal would also be part of the reason cited.

2212:

We have just had two pieces of breaking news, which warrant reopening this live page: The US government is expecting bond rating agency Standard & Poor's to downgrade US debt from its current AAA value, an official has told ABC's White House Correspondent, Jake Tapper; and the European Central Bank has agreed to start buying Italian bonds on Monday, according to the AFP news agency.

BBC Live link

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Was just about to post this. Blimey

Anyone on a tracker mortgage in the UK should be sphincter-winking right now, but i suspect most are too busy watching X-Factor and are totally oblivious to it.

Anychance you could explain how this downgrade would impact on uk interest rates please ??

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Interesting comment from Fitch:

Via Twitter BBCNewsnight

tweets: David Riley of Fitch credit ratings agency says a downgrade of US AAA credit rating won't cause signficantly more market turmoil #newsnight

Not much more market turmoil than we've been seeing lately then. Phew, that's a relief!

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Given our links to the US I doubt that. If anything the shiny stuff is likely to rocket from here*

*I have no money in gold/silver!!

It was extraordinarily resilient yesterday and today, in the face of certain liquidations. I was wondering why.

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Anychance you could explain how this downgrade would impact on uk interest rates please ??

Rates are all relative. If UK gilts are rated at Us Treasury + x then US rates going up will push UK rates up.

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Don’t worry - its all a little (2 Trillion) misunderstanding. It’ll all be sorted by Monday, just after the S&P board members surprise hillwalking incident.

CNBC

What is not at issue is that sometime in the early afternoon Friday, S&P informed the US Treasury that its committee had decided to downgrade US sovereign debt. Ratings agencies typically inform issuers of their decision before a press release is issued. But US officials quickly noticed an error in the agency’s calculations. This resulted in a change in the projected debt to GDP ratio. Instead of the 87 percent in 2021 miscalculated by S&P, it should have been 79 percent, a roughly $2 trillion mistake.

Neither side disputes the error.

But there are different versions of how long S&P then took after learning of its mistake to reconsider its downgrade. One source familiar with thinking inside the government says officials were stunned when S&P returned just an hour or two later and told them they were going ahead with the downgrade despite the mistake. The source says this suggested the agency was committed to the downgrade regardless of the data. The source adds that the new data showed the US achieving a sustainable deficit in the ten-year window.

What a buch of eejits, all of them ….although, I wouldn’t lend them anything, so maybe the downgrade is justified.

Edited by Captain Cavey

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Don't worry - its all a little (2 Trillion) misunderstanding. It'll all be sorted by Monday, just after the S&P board members surprise hillwalking incident.

CNBC

What a buch of eejits, all of them ….although, I wouldn't lend them anything, so maybe the downgrade is justified.

indeed, a GUESS about the future differs between two guessers, and this is a mistake....according to one of the guessers.

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I'm not sure this is going to make a massive difference.

The size of the US is massive and any big problems there (greece style) would simply kill the world economy, but maybe that's the plan?

Anyway, these are the same agentcies that gave NINJA loans a AAA rating. I know that the US could well struggle in the medium term, but I'm not going to believe a word that a credit ratings agency says!

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I agree FTSE to start recovering from Monday and be up by a couple of hundred points by next Friday, is my guess.

Not if the UK looses it AAA rating. Times they are a changin'

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Are insurance agencies only allowed to buy from AAA status countries?

Possibly, but it's only a self-made rule. As Ambrose Evans-Pritchard in the Telegraph said, they (pension funds) can change their investment strategy whenever they want, so worrying about AAA ratings is a bit of a red herring.

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  • 277 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% +
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      • Even
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      • up 5%



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