“Carnage in stock markets as I write — and all of the headlines I see attribute it to S&P’s downgrade.
“They really are trying to make my head explode, aren’t they?
“Once again: S&P declared that US debt is no longer a safe investment; yet investors are piling into US debt, not out of it, driving the 10-year interest rate below 2.4%. This amounts to a massive market rejection of S&P’s concerns.”
To the point, money is coming out of the stock market and being invested in U.S. debt, still considered by actual investors the safest investment in the world.
So I am wondering if S&P employees used their insider knowledge to short the stock market, and, if so, wouldn’t they being civilly liable?
From what I’ve been reading about S&P’s predictive skills, they were probably too stupid to short the market.