prr weekend thoughts..., page-25

well PRR and Oz could be OK tomorrow - except for China chest beating about the US's credit bingeing, (despite being the biggest lender), the general response to the S&P downgrade is very low key

had Moodys and Fitch followed suit or indicated an intention to, then we would have had some serious problems, as that would have affected the ability of institutions to post US securities as collateral for REPO financing - more collateral would have been required - but as it is only S&P going down this road, inter-bank lending will remain stable

Otherwise I'm wondering where most of the huge buying of PRR over Thursday/Friday went to.

It's difficult to imagine most of Thursday/Friday's volume moving into retail/punters hands, as they are usually the first to jump ship when markets implode as they were doing.

Is PRR now to be found in more stable hands? I hope so, as that could beacon less volatility ahead.

Suppose we'll just have to wait and see.



good luck