Friday job numbers

[Denny]

Good luck, word on the street is that the US loses its AAA rating from S&P this weekend.

Even though I know it is much deserved, it's gonna suck.

[Broncojohnny]

Even though I know it is much deserved, it's gonna suck.

We'll see, it may just be a rumour, all I have heard is that they are "taking action". In some countries where they have downgraded, nothing substantial happens.

[Denny]

We're talking S&P, not Fitch. It will affect investor outlook to the US. This is why they're trying everything to make bond buying sound like a half-decent idea right now.

[stevo]

zombies?

The undead do not count. Same for the nosferatu.

Stevo

[slow99]

We're talking S&P, not Fitch. It will affect investor outlook to the US. This is why they're trying everything to make bond buying sound like a half-decent idea right now.

Buy side institutional firms are mandated to hold xx% of assets in triple A rated securities. A downgrade could affect a hell of a lot more than sentiment.

[Broncojohnny]

Buy side institutional firms are mandated to hold xx% of assets in triple A rated securities. A downgrade could affect a hell of a lot more than sentiment.

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.

[Denny]

PIMCO doesn't have to worry about it. LOL

[KBScobravert]

Even though I know it is much deserved, it's gonna suck.

I jumped out of the market for a while as of this afternoon. I will hold cash for a little bit and catch some deals but more diversified. Truth is all my money besides my physical silver was in two blue chips and one was trading lower this week then when I bought it (1991) and has traded even lower by 2008 numbers.

[slow99]

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.

[grabberblue_11]

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.

[Broncojohnny]

LOL...wut?

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

[Jimbo]

Damn, S&P just downgraded the US rating.

[Broncojohnny]

AA+

[Jimbo]

LOL...wut?

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

"Off by trillions"? lmao.

[grabberblue_11]

Market will be very interesting next week!! On another note how about that change? Lmao