S&P downgrades U.S. credit. What happens? U.S. Treasuries go UP in value.

[JohnWxy]

http://www.bloomberg.com/news/2011-08-08/treasuries-rise-reversing-loss-as-asian-share-slide-boosts-debt-demand.html">U.S. 10-Year Note Yield Falls to Lowest Since 2009


Stocks tanked once the "compromise" deal with the Corporate Lobbyist Party(CLP) was locked in (Boehner said he got "98% of what he wanted"). And when S&P announced the down-grade of U.S. debt, U.S. Treasuries went UP!

Stocks went down because the "compromise" deal with the CLP has large cuts in Goverment programs which means the demand help that the economy needs from the public sector, will evaporate. Once the deal was in place, the economic prognosis worsened, stocks started down and the 'flight to safety' began. The fact that the U.S. Treasuries have been bid up in value (lowering their yield) demonstrates how good the S&P valuation of U.S. credit worthiness is.

[lib2DaBone]

1. The Market Makers ALWAYS make money.....

as they say on Wall Street.... cash ALWAYS passes from the hands of the weak to the hands of the strong.

Strong.. meaning the people with enough money to manipulate the system and control Congress and other law makers.

[johnd83]

2. I hope the idiots who did this to profit off failing US Treasuries

got their asses handed to them.

[awoke_in_2003]

3. has it ever happened before?

welcome to DU