s & p downgrades us debt , page-11

"The only people that will be shocked and fearful of the down grade will be the mums and dads investors in the street. They are the ones which will dump their investments and if you ask them why, they will say no reason other than being fearful."

Unfortunately your faith and reasoning might be a tad misplaced.

I feel you over estimate fund managers, and under estimate mum's and dad's.

Mum and Dad investors, this downgrade means nothing really. It just means their stocks and super funds go down for awhile. The rating levels of US paper hardly impacts Joe Bloggs.

For fundies however, expectation and realisation are two different things. Many funds are MANDATED by their prospectus to hold ONLY AAA paper.