How will the market react to downgrade?

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Originally Posted by Androidpk

Oh, you're right. We shouldn't even bother. Right.

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What exactly would you like a US "Spring" to accomplish?

Not voting. Europe's situation will be more of a factor in whatever the market does than S&P's downgrade of the U.S. (If Moody's or Fitch had also downgraded, then it'd be bad.)

I voted for 7% because there is no 5-7% option.

You guys aren't expecting the market's reaction to be rational are you? Just about the only thing that can be safely said, is that the market almost always overreacts.

The market has already done plenty of that this year, in the irrationally exhuberant run up, as well as the recent precipitous fall.

I have no idea what will happen, but what does one day matter anyway? Even though I think it's a pointless exercise, I'll cast my lot at a seesaw day, starting and ending with downward runs.

So far, the Dow futures are down 1.8% (203 points). We'll see how much of a hysteria run happens.

Down significantly at first. Cooler heads will prevail in the afternoon and by close it will break even.

Good to see the market isn't in full blown panic.. it's "only" down 200 now.. with signs of it leveling off. Maybe it won't be as bad as first anticipated.

Market has already been (excessively) going down during the "Debt Crisis" and obviously the news from S&P will be adding insult to injury.

I'd be of the opinion that market will react negatively, but it will not be a "crash" since so much negativism has already been priced in.

For some reason, I was posting in the respond to rep thread about this...

My prediction: down initially today, will begin a recovery before market close. The rest of the week will be reasonably flat.

Upshot: S&P made a bargain that they are more relevant than Moody's or other ratings agencies. They are going to be proven wrong, and their rating's worth will be reduced.

I think silver prices might go down for a while as people need to get some dollars and the market might get saturated. They'll probably jump back up to around $8 before EG. That's what this thread is about, right?