PIMCO chief: Deal won't prevent US credit rating downgrade

[chill_wind]

PIMCO chief: Deal won't prevent US credit rating downgrade
By Gautham Nagesh - 07/31/11 03:57 PM ET

The U.S. is headed for a downgrade in its credit rating regardless of whether a deal is reached this weekend, according to PIMCO founder and managing director Bill Gross.

When asked by CNN host Ali Velshi on Sunday whether the U.S. deserved to maintain its AAA credit rating Gross said a downgrade from one of the major credit rating agencies is inevitable.

more: http://thehill.com/blogs/blog-briefing-room/news/174591-pimco-chief-bill-gross-says-downgrade-of-us-credit-rating-is-coming

And maybe neither will all the trigger and commission trick stuff:

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=439&topic_id=1619895&mesg_id=1620135

[Ruby the Liberal]

1. Bill Gross has been short treasuries since April

He has made it no secret that he thinks the US is going to be downgraded and has maintained that for months now.

Dude runs the largest mutual fund in the world (PIMCO Total Return), so people tend to follow his lead.

[still_one]

5. and he hasn't been too accurate either. What will really piss him off is if the downgrade happens

and the interest rate on treasuries go down instead of up like he thinks will happen

Last week people were by the 10 year note in spite of the fear of a default happening

I lost all respect for Gross when the financial collapse occurred, and he was begging the government to effectively bail out most of his holdings

[plumbob]

2. That's what the whole show has been about. Interest rates will rise

across the board, and lenders will make much more money, including those who own our national debt.

Here comes more money, China!

AND big banks that thank god we bailed out or they couldn't fuck us like this now!

[RKP5637]

4. Yep, China is very happy about all of this, they will make even more off the

sucker nation known as the US.

[still_one]

9. If that happens, issues they currently own would lose value. Only new issues they buy would give

them the higher interest rate, which might not happen as these wonderful soothsayers are predicting

demand for the 10 year was quite high, and it went off below par on fears of a default

which only says that people still believe in the full faith and credit of the U.S.

[plumbob]

13. Yes, as they turn over current issues, they would make more at the new

higher rates. Higher rates follow credit downgrades to make up for the perceived risk.

These same wise credit rating agencies are the ones who guaranteed mortgage security shit as AAA, so we know they're honorable and honest.


Yeah, right.

[still_one]

7. Barring a default, a downgrade will not significantly cause interest rates to rise. There was a lot

of demand last week for the 10 year note, and it went off below par

People still believe that the full faith and credit of the U.S.

[Change Happens]

3. Yeah, right, and he also has been SHORTING the US bonds for two months

and lost billions...

[DCBob]

6. Mark Zandi of Moody's said just the opposite earlier this afternoon.

I would be surprised if there was a downgrade... at least not in the short-term.

[still_one]

10. Too bad for Bill Gross, he will be wrong again /nt

[originalpckelly]

8. I would downgrade it.

This nation cannot raise enough revenues to keep itself going, it has been strangled by an economic aristocracy that wishes to create an unquestionable shift in power, away from people and to them. Not temporarily, but permanently.

They want all the benefits of government services, and they get them, even when they are supposedly for the poor and middle class, the rich benefit. They do not want to pay for them, however.

[DCBob]

11. Moody's said they would probably issue a "negative outlook".. but not drop the AAA rating.

"Reductions of the magnitude now being proposed, if adopted, would likely lead Moody's to adopt a negative outlook on the AAA rating," the credit rating agency said in a new report."

"While Moody's is confident it will not have to downgrade the nation's rating because of a default, it maintained that long-term debt and deficit problems will continue to weigh on the AAA mark."

http://thehill.com/blogs/on-the-money/801-economy/174447-moodys-neither-plan-protects-the-nations-aaa-rating

[CountAllVotes]

12. many of PIMPCO's bond funds have been downgraded

How does it feel Mr. Gross pig? :puke: