asx monday predictions, page-26

The down rating was expected as S&P stated that downgrading was imminent if $4tillion wasn't cut..

US Govt' dished up $2.1trillion no surprise then S&P followed through.

The writing was on the wall. Hedge Fund Money is being made on dramatic movements in the markets.

Volatility swings is to be expected once the US Senate behaved in debt ceiling.

"The political brinksmanship of recent months highlights what we see as America's governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed. The statutory debt ceiling and the threat of default have become political bargaining chips in the debate over fiscal policy. Despite this year's wide-ranging debate, in our view, the differences between political parties have proven to be extraordinarily difficult to bridge, and, as we see it, the resulting agreement fell well short of the comprehensive fiscal consolidation program that some proponents had envisaged until quite recently. Republicans and Democrats have only been able to agree to relatively modest savings on discretionary spending while delegating to the Select Committee decisions on more comprehensive measures."

http://www.zerohedge.com/news/sp-downgrades-us-aa-outlook-negative-full-text

My guess is we surge in equities and sell off in bonds.