August 8, 2011

Live-blogging the reaction to the S&P downgrade...

... The Wall Street Journal is.

64 comments:

The Crack Emcee said...

I'm not going to look, but I expect it goes something like this:

AAAAAAAAAAAAAAAAAAAAHHHHHHHHHHHH!!!!!!

Canuck said...

hold onto your hats, gonna be bumpy.

Fred4Pres said...

Like we didn't already know this news? Grow up. You are like little children.

Original Mike said...

Frankly, I don't expect much market reaction. S&P only told us what we already know. We are on the road to ruin. Not saying we can't turn around, but are $14.5T in debt and spending at the rate of 25% of GDP.

Who didn't know this already?

AllenS said...
This comment has been removed by the author.
Pogo said...

Obama had good grades in college, however.

Paul Zrimsek said...

Guest-blogging today Yoda is?

Original Mike said...
This comment has been removed by the author.
AllenS said...

Dow 11,131.16 -313.45 -2.74%
Nasdaq 2,445.53 -86.88 -3.43%
S&P 500 1,160.73 -38.65 -3.22%

Bummer.

Original Mike said...

Speaking of road to ruin. Our unfunded liabilities are more like $115T. That's over $1,000,000 per taxpayer.

Fred4Pres said...

Pogo, Obama had good grades in college? I guess we have to take his word on that don't we?

Original Mike said...

"Obama had good grades in college, however."

That's why he's hiding them? He's modest?

Fred4Pres said...

We might just go below 11,000. Currently at 11,089 with a 20 min delay.

Pogo said...

I don't care.
Obama is awesome.


The Tea Party caused the Dow to drop; those bastards!

Shouting Thomas said...

Official Obama admin reaction... It's all the fault of the Tea Party.

Bastards won't allow us to borrow and spend even more.

bagoh20 said...

After over a decade of trading, I got out completely last April. It's amazing how nice it is to simply not care. I got out the day before that huge 1000 point drop (which ended up being just a computer error). Now I stress out about people stealing my tomatoes...and I don't even have a garden.

Tim said...

"Heads up: President Obama to say something at 1:00 p.m. ET.

Excellent! As the market is sure to jump of the cliff as soon as the Dali-Obama starts riffin' off the teleprompter (what were the teleprompter's grades?), the heads up is "sell, sell, sell."

Pogo said...

Oh God, Obama's gonna speak??

We are effing doomed.

Every time he opens his mouth, an industry dies.

Original Mike said...

""Heads up: President Obama to say something at 1:00 p.m. ET."

He'll blame S&P on Bush.

Dust Bunny Queen said...

Not a surprise. The ratings agencies have been warning for months and months.

Anyone who is paying attention has already sold out or repositioned.

To blame the Tea Party is to shoot the messenger.

This melt down has been in the making for at least 8 years or longer. How long can you max out your credit card, over spend and partaaay!!! before the music stops and the whole thing comes crashing down. Chickens come home to roost...indeed.

Dust Bunny Queen said...

Cutting the spending from the budget is the ONLY way to correct this problem.

The puny amount that they agreed to as cuts is nothing. A drop in the bucket.

It is like me saying I'm going to lose weight by trimming my fingernails.

Congress and Obama are fooling no one, least of all the financial markets.

vw: cramings. leave that to your imagination

Paul Zrimsek said...

Heads up: President Obama to say something at 1:00 p.m. ET

"Fore!"

Scott M said...

Good point over at Insta. How can the White House simultaneously claim S&P's downgrade is mathematically incorrect while at the same time blaming the Tea Party?

Paul Zrimsek said...

vw: cramings. leave that to your imagination

People who act on Jim Cramer's stock tips?

Original Mike said...

I think the real question is: "What took them so long?"

Pogo said...

Clearly it's time for another Obama vacation.

Clyde said...

We are so Romered... Or is that "We are so Geithnered"?

And we didn't even get kissed!

Original Mike said...

FY 2008 — $460 billion
FY 2009 — $1,410 billion ($1.4 trillion)
FY 2010 — $1,300 billion ($1.3 trillion)
FY 2011 — $1,600 (estimated) ($1.6 trillion)

Hey, it IS the Tea Party's fault. Post hoc ergo propter hoc.

Dark Eden said...

///How can the White House simultaneously claim S&P's downgrade is mathematically incorrect while at the same time blaming the Tea Party?///

It was always our plan to be down at the half. Also, what game were the refs watching?

Scott M said...

It was always our plan to be down at the half. Also, what game were the refs watching?

I don't think chronotons are going to help us out of this one.

Scott M said...

Does blaming the Tea Party for the S&P downgrade also mean the Tea Party gets credit for the Moody and Finch affirmations of AAA?

Crimso said...

Everybody remain calm! We can always just print more money if we're running short. Once the markets realize this, they'll come around.

Aridog said...

Ahhh ... Turbo Timmy is staying. Two images say it all: No. 1 and No. 2

Scott M said...

What do you suppose President Obama will say regarding the Tea Party? My guess is something along the lines of "the extremes of both parties", but I wouldn't put it past him to single the Tea Party out without mentioning it by name. I get the impression that within the confines of 1600 Penn Ave, the Tea Party is They Who Shall Not Be Named.

WV - "tronsub" soon to be seen in the sequel to Legacy.

Hoosier Daddy said...

Insty is right. The best we could hope for at this stage is Carter redux.

Scott M said...

He'll probably also mention the change from 9.2% to 9.1% unemployment, but say it's not enough/not acceptable and we need to keep working on it.

Dust Bunny Queen said...

This video seems very appropriate right now.

:-D

Triangle Man said...

S&P stands behind their decision despite the acknowledged
$2.1 trillion dollar error
in the math?

Triangle Man said...

Maybe the S&P just decided it was time to feed the bears.

Triangle Man said...

Coupled with their complicity in the mortgage derivative meltdown I wonder if this gaffe might signal the end of Standard and Poors.

Original Mike said...

Yeah, it's not out profligate spending. It's a math error. Uh-huh.

Scott M said...

More kids excited to go to school - remember how in the last month of 3 months vacation you were always ready to go back?

Didn't S&P reply that it didn't matter because the error was a drop in the bucket over the term they were discussing at that part of the decision to downgrade? I'm trying to find the link.

Scott M said...

lol

copy/paste quote fail

Yeah, it's not out profligate spending. It's a math error. Uh-huh.

t-man said...

Geithner: How could you have a $2 T error? You are supposed to be financial geniuses!!!

S&P: We used TurboTax.

Geithner: -------

S&P: Given the scope of the problem, the $2 T doesn't really matter, that's why TurboTax didn't pick it up. Our analysis still stands.

Geithner: ---------

Saint Croix said...

Triangle Man, 10-year projections are horseshit.

in 2001, the CBO projected that we would have zero debt in 2011. Actually, they predicted that we would have $25 trillion in extra cash.

Did not work out that way.

http://www.zerohedge.com/news/speaking-credibility-here-cbos-2001-forecast-which-predicted-negative-25-trillion-net-debt-2011

We are $15 trillion in debt and our government officially decided to fucking add a few trillion more until 2012.

That's all you need to know.

Any 10-year-projection is unreliable. Liberals think they can predict economies, climates, they think they can predict anything. It's what makes them so stupid, their arrogance.

Joe said...

S&P made a $2 trillion error in their calculations, but proceeded anyway. This proves nothing has changed. Their analysis isn't objective. It's utter incompetence couples with extreme vanity.

My guess is that they are simply pushing their weight around--it's a power trip. Making shit up is what they do well and this is no different.

(This isn't to say, we shouldn't bring down our debt. I've been pretty damn clear on that. However, our bonds are not at risk.)

Joe said...

Saint Croix; if ten year projections are horseshit, then how can any rating agency rate anything?

In one sense they can't. In another, they can look at the face value of things right now and make a statement as to whether circumstances support buying that debt. In this regard, S&P has been rubbish and still is. Unfortunately, they have a credibility they simply don't deserve.

Dust Bunny Queen said...

S&P made a $2 trillion error in their calculations, but proceeded anyway. This proves nothing has changed. Their analysis isn't objective. It's utter incompetence couples with extreme vanity.

Shorter Joe.

(fingers in ears) la la la la I can't hear you.

Whistling past the graveyard boys.

Original Mike said...

"10-year projections are horseshit."

Greenspan made the point Sunday morning that the 10-year projections that everyone is using are unrealistically rosy because they assume normal economic growth. $2T one way or the other is immaterial.

Hoosier Daddy said...

"...Greenspan made the point Sunday morning that the 10-year projections that everyone is using are unrealistically rosy because they assume normal economic growth..."

Kind of like Clinton's 'surplus'.

Paul said...

Just thank President downgrade, who will speak at 1 PM today on his downgraded rateing.

Thank him in 2012 with a downgrade.

Scott M said...

No teleprompters in the live shot Fox is carrying online. The other links I've tried timed out. Heavy traffic?

Scott M said...

Could we maybe upgrade that carpeting? Say, somethin from after Louis XIV?

Original Mike said...

President Downgrade. Heh.

Scott M said...

Excellent trimwork on and around that fireplace, though. Fluted panels rock. The shot's too low to see the wainscoting, but I'm betting it's 1' or so. Equally impressive, I would wager. The real question is...is it all pine? (lol)

Scott M said...

The shot is also too low to see who the portrait above the fireplace is. I've got the audio going regardless of open window, and they keep hushing up so I keep flipping back to it...but it's just the buffer getting it's panties in a knot.

Original Mike said...

"No teleprompters in the live shot Fox is carrying online. The other links I've tried timed out."

Maybe they're checking their math.

Saint Croix said...

if ten year projections are horseshit, then how can any rating agency rate anything?

The same way people talk about the fucking climate. Wild ass guess.

Who is going to win the Super Bowl in 2021?

Saint Croix said...

The start of wisdom is recognizing there are some things you don't know, and cannot quantify.

Triangle Man said...

Who is going to win the Super Bowl in 2021?

GREEN BAY PACKERS!!!!!!!1!!!!!!!!

Scott M said...

Who is going to win the Super Bowl in 2021?

The Las Vegas Bitches by 7.

Original Mike said...

"Who is going to win the Super Bowl in 2021?"

The Bejing Repos.

Scott M said...

Headline: Obama calls US AAA nation despite AA+ Rating

My father said the same sort of things to me when I came home from a loss in sports. Despite the way my father might have felt, we had still lost.

Alan said...

Live-blogging the reaction to the S&P downgrade...The Wall Street Journal is.

From Yoda did our esteemed bloghostess learn grammar, hmm?