The Effects of the Downgrade

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	Monday August 8, 2011 Visit Our Website | Unsubscribe Trouble Reading this Email? - Click Here The Effects of the Downgrade $2 Trillion Error Time to Buy Stocks Fellow Investor, By now, you've no doubt heard that Standard & Poor's has downgraded the U.S. credit rating one notch. Let's first understand that this downgrade is more a political statement than a financial one. And it's not likely to affect U.S. Treasury yields much. I think we all agree that the level of debt the U.S. has taken on is not sustainable. Spending cuts are necessary, and that will need to include the so-called entitlement programs. Let's hope this is a wake-up call for the U.S. Congress and administration to get their act together and do something meaningful to deal with debt and spending. After all, the U.S. has run big budget deficits before, and they have been reversed. It can happen again. There is some interesting commentary on S&P's move out there. Warren Buffett says that S&P "erred" with its downgrade. PIMCO's Bill Gross says S&P finally showed some "spine." Treasury Secretary Tim Geithner reportedly alerted S&P that is made a $2 trillion error when it projected budget shortfalls out into the future. I find that particular item -- that S&P's math was off -- to be particularly interesting. This is why I say that S&P is politically motivated. If the math doesn't matter, then it's the contentious process that led to the recent budget deal that's a problem. And clearly, when you have any faction of government that thinks default would be a good idea, or at least tolerable for reaching political ends, you have added risk. In a way, this debt situation was inevitable. Congress has avoided the Social Security/Medicare issue for several election cycles, even though the writing has been on the wall that these programs were not sustainable. The desire to be elected has trumped fiscal responsibility - and for far too long... Click to view the remainder of the article... Urgent Presentation: This is the Tipping Point Supply and demand are on a crash course! Our food supply is at a breaking point ... we're seeing record corn and sugar prices ... cotton is at a 150-year high ... produce costs are skyrocketing. And it's only going to get worse thanks to severe flooding and record droughts. Some of the smartest investors on the planet have already realized this and are pouring their money into what will undoubtedly be one of the biggest profit opportunities of the decade. Most investors won't catch on until it's too late. But today is your chance to get in on the ground floor of an investment that could triple your money in the next 24 months. Just click here now to watch this important message.   Market Snapshot US Markets - August 5 Close Dow Jones 11,444.61 +60.9 (+0.53%) S&P 500 1,199.38 -0.69 (-0.00%) Nasdaq 2,532.41 -23.98 (-0.94%) Currencies EUR/USD 1.417 -0.012 (-0.858%) USD/JPY 77.665 -0.76 (-0.969%) GBP/USD 1.634 -0.008 (-0.815%) Recent issues of Daily Profit Stocks Get Crushed Can Government Spend Smarter? Austerity and the Economy more» Valuable Investment Ideas From Wyatt Investment Research Is Paul Krugman Right? Nobel Prize winning economist and New York Times columnist Paul Krugman says gold is in a bubble. more» A Must Own Small Cap Stock Given the current market volatility, "safer" income-generating investments are increasingly considered by smart investors. more» Why You Shouldn't Panic After the Big Decline Let's see if a few bulls take the bait and buy July's "good" employment numbers. more» Independent Investment Services Wyatt Investment Research provides investment research that is independent of the back door deals and machinations of Wall Street. more» Need to retrieve your password in order to view our articles? Click here. Disclaimer & Important Information Wyatt Investment Research and Daily Profit is owned and published by Business Financial Publishing, LLC of Washington D.C. Business Financial Publishing is neither a registered investment adviser nor a broker/dealer. Readers are advised that this electronic publication is issued solely for information purposes and should not to be construed as an offer to sell or the solicitation of an offer to buy any security. We encourage you to review our full Disclaimer and Disclosure policies. To view our Disclaimer Policy, please click here. To view our Disclosure Policy, please click here You are subscribed with the following email address: ignoble.experiment@arconati.us To unsubscribe from this newsletter, please click here. If you believe this communication to be a mistake or unsolicited, please e-mail abuse@bfpnewsletters.com with details regarding your situation, and we will be sure to promptly investigate your situation. Copyright (c) 2011 Business Financial Publishing, LLC. | Privacy Policy Wyatt Investment Research c/o Business Financial Publishing 65 Railroad Street Richmond, VT 05477 PO Box 790