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A flight-to-quality by investors trumps - by a long shot  - concerns over holding U.S. debt...

A flight-to-quality by investors trumps - by a long shot  - concerns over holding U.S. debt after S&P's downgrade brings buyers in droves out of stocks and into the now "AA-rated" safe haven. Treasury yields: 2-year -5 points to 0.25%, 5-year -16 points to 1.09%, 10-year -18 points to 2.38%.
Comments (3)
  • +$50 billion in new debt…yea!
    8 Aug 2011, 12:39 PM Reply Like
  • Today is a monumental failure by the world financial media. For the past 3 years, the market has screamed that it is not worried about US debt by lending money to the US government at ultra low rates.

     

    But the financial media has ignored that and instead has completely bought into the Tea Party story of impending bankruptcy for US.

     

    Well, it has all climaxed in this one day. A crash because of real economic worries is being blamed on a downgrade by an incompetent rating agency. It might be sorta excusable if not for the fact that rates are down EVEN MORE in light of this "downgrade". And yet the drumbeat goes, "Selloff due to US downgrade"

     

    Complete and utter incompetence.
    8 Aug 2011, 12:50 PM Reply Like
  • If they bring it down to single A then I'll jump in.
    8 Aug 2011, 03:35 PM Reply Like
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