Ironically, S&P downgrade precedes soaring bond market

Discussion in 'Economics' started by bond_trad3r, Aug 8, 2011.

  1. The S&P downgrade may have accomplished what Bernanke could not. Binds are soaring!! Wow, didn't see that one coming.
  2. rew


    That doesn't surprise me at all. We have seen this for several years now -- the more fucked up the American financial system, the higher treasury bonds go.

    So.. S&P downgrades U.S. debt ...
    causing everybody to panic sell out of the stock market...
    and put the cash into the usual "safe haven" -- U.S. debt.
  3. Wake up all of you here - almost all of you. The media system set the stage for the stock panic. They never said the bond market will collapse. They kept talking about stock market collapse. As I said previously, this should affect more the bond market and there should have been a flow of funds to high quality stocks. Apparently, this is a grand scheme to rip off Americans and others of their savings money. Everyone is involved and everyone makes money on the back of the average person who works hard to put some money in their investment account.
  4. bone

    bone ET Sponsor

    No, the OP has it bassackwards. The US bond market signaled this starting the first week in May of 2011.

    The bond markets have always been much smarter than the stock markets. Seriously.
  5. jem


    great comment, makes sense.