s & p downgrades us debt , page-10

I think your right Pieces.

The market always knew that the down grade was coming, the only question was going to be when? So good to get it out of the way.

So, IMO the professionals and investment houses would have factored it in already. With the heavy selling overnight in US equities, someone was ready and capable of mopping up the shares at will (smart money).

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.

Top end of town wins again.

Fear and greed, thats the share market.

Back to US bonds, they are still cheap ans to go from AAA rating to AA plus still leaves them at investment grade. The down grade may add only about .50%.