Monday should be fun.

oh fuck.

and came on here to post this guess i have been beaten

Interest rates will go up if S&P ratings really mean anything. Hopefully the DJI won't dip again like it did yesterday because of this.

Wait until it all tanks then buy like it's a clearance sale at a department store.

God willing, this is the final nail in the coffin for Obama.

I wonder what happends to Financials Monday

Dude, that's close to '08 numbers. It's definitely not that bad.

How so? The problems of 08 were never solved.

Wow I am impressed that they actually stepped up and went through with it.

While this is clearly not great news, one cannot be surprised. As someone posted above (maybe the OP), the S&P was looking for $4 trillion and instead got some BS "$2.whatever" trillion. As for doing it on a Friday night, I'm not sure what to think. In some sense it allows for the news to be digested before Sunday's Asia open.. on the other hand, people could dwell on the news the entire weekend, making it even worse than had they done it during the week.

Either way, the market will sell off (unless we get QE3?!?). The politicians need to understand that their joke of an effort at "debt reform" is not fooling anyone. Real changes need to be made and they needed to be made yesterday. FIGURE IT OUT.

Interesting op-ed: http://www.guardian.co.uk/commentisfree/cifamerica/2011/aug/05/us-credit...

The problems absolutely persist, but the gloom-and-doom atmosphere that decimated the markets in '08 isn't quite the same today.

Downgrading the U.S. only serves as a temporary bump to the economy.

Fed basically just told S&P to eff off.

I'm shocked they actually followed through. Props to S&P.

interning, am.

Want to put some money where your mouth is?

I hope you're right. I set up a solid energy short last thursday, executed well, and covered today....then I flipped and went the other way this afternoon. I don't need any Lehman bullshit.

It's no secret S&P is staffed with complete retards and wall street rejects. They acknowledged to the Obama admin that they were off by $2 trillion but will stick with their assessment all the same. Hah!

Risk free rate in CAPM is no longer risk free. Draw your own conclusions.

No one one knows for sure, it's all speculation at this point but there will definitely be some very interesting developments over the next week.

Another thought - This just GREATLY, I mean GREATLY reduced Obama's chance of getting relected. Too bad because I thinks he genuinely wants to do the right thing for the people. oh well..

I have money where my mouth is... Went long today after being in cash for the last few months. If I have to weather another 1000 point decline, I can endure it. I think august may be rough but post labor day we start moving up again. Just my opinion guys, not trying to pick fights you guys have just as much as a chance being right as I do haha. Good luck to everyone though, long or short.

Not for the downgrade risk in the short run, but in the long term it would only help if they had put a condition into the bill that any increase in tax revenue from the bill would go towards paying down the debt. Alas that did not happen.

Man you know a lot of political bullshit went into this one. First there were rumors all day and the market didn't really respond.. which makes me think they thought DC would be able to shove it under the rug.

Then Kudlow announces on his show 'Breaking News' that S&P is going to downgrade us. THEN shortly after he announces that we will not be downgraded and it was false. Finally after taking a nap I wakeup and we are officially AA.

I bet they could make a movie about what happened behind the scenes today.