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Alex Filonov
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I was born in 1956 in USSR. After graduation from college in 1979 I worked full-time as an IT specialist. Until 1990 I worked for different companies in the Soviet military industrial complex. I created a small software business in 1991, which failed in 1993. I worked for Oracle Corp in 1995 in... More
My blog:
Muddling Investor
  • US Downgrade is Stupid 7 comments
    Aug 6, 2011 12:14 AM
    I don't know what is used instead of brains at S&P. Up until 2007 they easily stamped AAA on collaterized debt obligations consisting of barely prime or even subprime mortgages. Now they slap downgrade on the country which paid its debts for more than 140 years! Yes, last debt limit debate was crazy, unnecessary and damaging US reputation. But memory of it will fade quickly. After all, there were similar partisan battles in 1979 and 1987 (first time republicans played the role of idiots, second time, democrats).

    I agree with Barry Ritholtz. This doesn't say anything about US credibility. It says everything about rating agencies credibility. It's zero. 
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Comments (7)
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  • LookingConfident
    , contributor
    Comments (875) | Send Message
     
    Reason? - www.youtube.com/watch?...
    6 Aug 2011, 12:54 AM Reply Like
  • anarchist
    , contributor
    Comments (1365) | Send Message
     
    Is it possible that this downgrade of US debt, after the market crash this last week, is priced into the Market?
    6 Aug 2011, 11:37 AM Reply Like
  • Alex Filonov
    , contributor
    Comments (1412) | Send Message
     
    Author’s reply » Don't know. Maybe. I don't feel this market. I bought something on Friday because I had too much cash to my taste. I still do. Yes, I think I bought at a good price, but the prudent investor knows that (s)he can always be wrong.
    7 Aug 2011, 12:34 AM Reply Like
  • LookingConfident
    , contributor
    Comments (875) | Send Message
     
    I feel that it has been factored in.
    6 Aug 2011, 07:46 PM Reply Like
  • LookingConfident
    , contributor
    Comments (875) | Send Message
     
    .
    Unfortunately, this won't stop the greedy shorting the market and in particular, in a naked fashion. Dramatic steps should be taken to put a 'safe-guard' in place (over the next 24 hrs), to place a ban on the practice of "shorting" for a minimum period of time, ahead. Genuine selling is not a problem.
    6 Aug 2011, 09:25 PM Reply Like
  • Alex Filonov
    , contributor
    Comments (1412) | Send Message
     
    Author’s reply » And the sad thing about it is that naked shorting is perfectly legal on most financial markets.
    7 Aug 2011, 12:35 AM Reply Like
  • LookingConfident
    , contributor
    Comments (875) | Send Message
     
    .
    So true .... Legal or, not ... Market Makers have their own "God-given" right to do so and do, do so.... as they please! And may well do so, come Monday.

     

    Perhaps we may get to see yet another "artificial" propping up of the markets? (Similar to, post 9/11?)
    7 Aug 2011, 08:27 PM Reply Like
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