Friday job numbers

[Jimbo]

So how bad will bond ratings drop? I assume interest rates will really be moving based on the new "risk" levels. Wasn't freddie asking for a few billion more today?

[Broncojohnny]

So how bad will bond ratings drop? I assume interest rates will really be moving based on the new "risk" levels. Wasn't freddie asking for a few billion more today?

See our posts above. The worry is the holders that can only hold AAA rated debt. Technically speaking, billions of dollars of what used to be AAA rated securities are either going to be up for sale or will need hedging or ???.

Basically, no one knows what is about to happen. Just like when the stock market took a shit in 2008 and people got up in front of Congress and said they had no idea what was going to happen. This is uncharted territory.

[slow99]

What really gets me is the pay raises they claim in these reports. Where are these coming from? I've been in the workforce since 2008 and switched jobs and still no raises, performance bonuses yes, but where are these raises coming from?! Cost of living seems to go up by the minute but not my salary.

Precisely why the top priority for my investment banker's union will be fair pay and raises!

[Broncojohnny]

Well I'm watching Bloomberg and so far there seems to be a lot of eyebrow raising and not a lot of pants shitting.....

[slow99]

It's a conspiracy, the Govt controls everyone they'll never downgrade! Oh wait...

[KBScobravert]

LOL...wut?

http://www.cnbc.com/id/44039103

just saw that

http://finance.yahoo.com/news/SampP-downgrades-US-credit-apf-2107320979.html

[momo]

yack that's going to make for a very ugly monday morning.

[aggie97]

so what percentage of created jobs are from deaths?

Just curious if that might be a large slice of the "jobs created pie".

[Jimbo]

so what percentage of created jobs are from deaths?

Just curious if that might be a large slice of the "jobs created pie".

Like wall street jumpers?

[Denny]

And that is the wild card. Down the ladder of debtholders the largest domestic ones behind the Fed are these institutional holders. But my question is, where do they go with that money? Who buys what they dump? I'm not sure what they can do.

Exactly. A lot of the buy-siders I know (and the hedge fund I worked for) had the RFP's written as "in case of xxxxx, this is the course of action." Let's be honest, the smart money has known the US sucks for years.
These treasury and cash holding requirements are also 1 of 3 main reasons it's damned hard to beat your bogey when managing money. By the time you earn management fees, and cash holdings you actually have to beat your benchmark by about 3% on a consistent basis. When you include the fact that your hamstrung by your benchmark as to your investable assets, the size of your trades (greatly impacts entry and exit points), and you're evaluated on a risk-adjusted basis...it's damned difficult to consistently outperform a broad market class. That's why I always get a kick out of people who talk about how great their investment performance is and how these institutional guys don't know what they're doing. I also have to assume that the Fed would step in to buy all this shit...who else would unless yields got really out of whack.

But, but, but... The Bernank said that the Fed would NOT monetize the debt. I have it on tape!!!

See our posts above. The worry is the holders that can only hold AAA rated debt. Technically speaking, billions of dollars of what used to be AAA rated securities are either going to be up for sale or will need hedging or ???.

Basically, no one knows what is about to happen. Just like when the stock market took a shit in 2008 and people got up in front of Congress and said they had no idea what was going to happen. This is uncharted territory.

/inhales deeply

I love the smell of QE in the morning...

[Denny]

Precisely why the top priority for my investment banker's union will be fair pay and raises!

Holy shit, that was funny!

[The King]

just saw that

http://finance.yahoo.com/news/SampP-...107320979.html

From the link above:
"House Democratic Leader Nancy Pelosi said the American people will be closely watching the work of the 12-member joint committee that has been created to produce more than $1 trillion in additional savings over the next decade."

The last I read about the 12-member supercommittee indicated that their work would be done behind closed doors, like one might expect of Soviet-inspired apparatchiks. How does that translate into the American people being able to closely watch the work of this committee, Ms. Pelosi???

Where's that promised transparency, obammy?

[aggie97]

Like wall street jumpers?

No, just the ordinary regular death rate which results in open positions...

How many american workers just pass away every month?

[slow99]

But, but, but... The Bernank said that the Fed would NOT monetize the debt. I have it on tape!!!

By purchasing existing debt?

[slow99]

Holy shit, that was funny!

Figured you'd like that.