Wednesday, March 11, 2020

We've correctly predicted the end of a good US period by March 2020. So what's next? - Part 3

https://sg.finance.yahoo.com/news/p-global-slashes-oil-price-124113479.html

The S&P credit rating firm is warning about massive credit rating downgrades for oil and gas companies.

We had warned about the impending credit rating downgrades recently.

http://sg-stock.blogspot.com/2020/03/weve-correctly-predicted-end-of-good-us.html

We highlighted 3 things recently.

1. FED is short of USD.
The New York Fed expanded its repo funding by injecting cash into the US FED (after our posting).  The New York Fed is both the boss of the US FED and is also a subordinate.

2.  The US treasury department is flushed with cash.

3.  Massive credit rating downgrades are coming.
The first to fire the salvo is the S&P global credit rating firm by targeting the oil and gas companies (after our posting).

https://sg.finance.yahoo.com/news/p-global-slashes-oil-price-124113479.html

Yeah! We're right again!
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6 comments:

  1. Eric HoMarch 11, 2020 at 4:00 PM

    https://www.cnbc.com/2020/03/10/trump-pitched-0percent-payroll-tax-rate-for-the-rest-of-this-year-white-house-officials-say.html

    Since the US Treasury dept is flushed with USD, Trump can use the cash for his stimulative policies.

    However, when the investors start to sell the US treasuries, he has to prepare the USD supply for the cashout.

    ReplyDelete
  2. Eric HoMarch 11, 2020 at 5:35 PM

    https://www.reuters.com/article/australia-ratings-sp/australias-aaa-rating-not-under-immediate-threat-from-coronavirus-sp-idUSS9N2A600U

    S&P will not cut Australia's rating because Australia follows the US in cutting its rate.

    https://www.marketwatch.com/story/australias-central-bank-cuts-rates-over-outbreak-2020-03-02

    ReplyDelete
  3. Eric HoMarch 12, 2020 at 12:00 PM

    https://finance.yahoo.com/news/stocks-tumble-trump-bans-travel-020623500.html

    The US excludes UK from the travel ban because the UK follows the US in the rate cut.

    ReplyDelete
  4. Eric HoMarch 12, 2020 at 5:06 PM

    https://clicklancashire.com/2020/03/12/new-york-fed-boosts-daily-cash-injections-us-175b-daily.html

    New York FED injects money again!

    ReplyDelete
  5. Eric HoMarch 15, 2020 at 12:15 AM

    https://finance.yahoo.com/news/nyu-professor-ed-altman-on-corporate-credit-120019162.html

    NYU professor also said massive credit rating downgrades would be coming.....Hahaha!

    ReplyDelete
  6. Eric HoMarch 17, 2020 at 5:53 PM

    https://www.nasdaq.com/articles/loan-losses-to-double-at-australian-banks-from-covid-19-rating-agencies-2020-03-17

    S&P is targeting Australian banks now. Hahaha!

    ReplyDelete