This AM basically said that the ratings agencies were doing the bidding of the commercial banks. GE and MBIA have same rating, come on. Welch said in a nutshell, you don't want to have one of these insurers go down, so rating agencies are doing the bidding of the market. Kernon saying, well, how does that make them independent and how can you believe any of their other ratings then? Good point. The system is doing everything in its power to keep the market from breaking down, guess I won't fight it. SRS may just go below the 200 day MA for awhile.
That is a good point. Only a fool would trust Moody's and S&P and even more of one would purchase or sell stocks based on anything they say. What is holding the market up this morning? PPI is 1%, they expected .04. Core PPI is .4 and they expected .2 Home Depot warned, foreclosures are up 57% from last year. If inflation keeps up this pace, or anything close to it, the Fed will have to raise rates to combat it. I bet they will tear apart the report and exclude medicine and whatever else was high and say "well if you exclude medicine and ...... then the inflation rate is only ......." Just like they did yesterday with the S&P on CNBC. they said "If you take out the financials then the S&P is growing at a much faster rate". LOL financials are a HUGE portion of the S&P, you cannot simply exclude them and think everything is ok. I can't believe these people on CNBC and Fox business network get paid to say such stupid things.