Breaking News: S&P Downgrades US To AA+
CNN is reporting that S7P wanted to downgrade this afternoon.
Some WH official pointed out a $2 trillion mistake, WHICH S&P ACCEPTED AS A MISTAKE.
SO they go back and re-do their analysis.
NOT EVEN $2 TRILLION MATTERED.
Friday night theatrics. At least they tried to lessen the impact after close. Curious as to what Monday brings....
My guess is treasuries are going to sell off on Monday. The Treasury dept. will be facing a more hostile market for new debt issuance. The Fed is going to have their justification and political capital to initiate QE3 come their Aug. 9 FOMC meeting if they don't enact emergency measures before then. Metals will rise.
If it keeps on raining the Levee is going to BREAK!!
I expect BOTH metals to get margin requirement hikes no later than Sunday night. This will not be smooth. The volatility will be insane going forward.
I only buy physical silver and gold and I'm thinking about making big additions Sunday morning. I've been waiting to buy more. I'm thinking this is a good time to lay down another 10k in silver and gold. What do u guys think?
I wish I had that problem/opportunity. Silver is beautiful but I would love to have Gold for company. Buy both. P.S. "Undaunted Courage" (Lewis and Clark). Great read if history interests you.
LVStrapped - I pulled the trigger last night and will likely do so again today. I read an unsourced comment in the blog that physical PMs are up over 2% in India on the US downgrade news. Floodgates, they are opening IMO. YMMV.
2% huh? That means silver would only need another 8% or so on top of that to be where it was 2 days ago.
Get it while it's cheap. YMMV.
Thx guys for the input. I'm pulling the trigger tommorow morning. I'd rather have a couple tubes of ASE then a stack of green backs anyday.
Oh boy, Monday is going to be interesting