haspete's - aint no gfc - monday, page-7

The Australian/Asian markets have had all w/end to digest everything, so whatever the moves in the market today I think they'll be justified.

The Fed has stated that S&P's downgrade doesn't change anything in terms of risk-assessment of US Treasuries for Capital holdings of institutions

http://www.federalreserve.gov/newsevents/press/bcreg/20110805a.htm

However I stand by my call that this US Credit Downgrade brings AUSTERITY closer for the US. And this is not a good thing when Gov't fiscal stimulus (on a massive scale) has tried to substitute for the collapse in Private Demand since the GFC. I think this is what the markets will be pricing in today. Just my own opinion...