Nothing to do with the Washington landscape, but S&P rating no longer has meaning. This should be the only story about the rating fiasco. They made a $2 trillion mistake and are sticking to their guns. In the mean time investors are investing in the newly down graded U.S. T Bills lowering the U.S. rates.
They were off by 8%
S&P downgrades and money floods into long term U.S. Bonds lowering interest rates which were already low.
1 comment:
It's a great point. To whose advantage is the $2T mistake? Someone who owned the downside options on U.S. bond futures... Now we track back those that were holding the downside on bond futures to those that are members of the board on S & P and...oh sorry...we can't really do that...
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