JUST IN 🚨 FITCH DOWNGRADES UNITED STATES RATINGS TO AA+ FROM AAA
— Insider Paper (@TheInsiderPaper) August 1, 2023
Fitch just downgraded the US to A.
Credit event risk coming from everywhere now.
— Michael A. Gayed, CFA (@leadlagreport) August 1, 2023
The USA just had its credit rating dropped from AAA to AA+ 🩸
See charts for how markets reacted when this happened in 2011!
I issued a warning about this to Insiders Access back in May.
Img 1: Is Fitch downgrade in Nov '11
Img 2: Moody's downgrade June '11#stockmarkets… pic.twitter.com/wnOcDPrHq2— Peter Tarr (@ProfitsTaken) August 1, 2023
And so it begins…just wait until later this month when the fireworks really start.
Global stocks dropped as Fitch Ratings’ downgrade of the US sovereign credit grade spurred a rapid retreat from riskier assets.
Broad losses in Europe dragged the benchmark regional index down by the most in almost four weeks. S&P 500 and Nasdaq 100 futures slid more than 1%, signaling a sharp drop on Wall Street following five months of gains for US stocks.
Fitch stripped the US of its top-tier rating, criticizing the ballooning fiscal deficit and an “erosion of governance.” The downgrade serves up an extra dose of jeopardy for equity investors already concerned over the risks of recession and whether this year’s run-up in stock markets is sustainable.
finance.yahoo.com/news/treasury-futures-dollar-slips-fitch-220515670.html
US interest expenses have surged by about 50% in the past year, to nearly $1 trillion on an annualized basis. pic.twitter.com/5Abb2kHXty
— Lisa Abramowicz (@lisaabramowicz1) August 2, 2023
Steps:
1) Credit downgrade so nations dump US treasuries
2) Rapidly raise rates
3) Restrict swap lines causing Dollar shortage
4) Stage "incident"
5) Dollar skyrockets
6) Panic spreads to financial system
7) Nations collapse
7) Print trillions & buy your cheap debt
8) Great Reset— Financelot (@FinanceLancelot) August 2, 2023
It's an eerie morning start today.
All index futures are down while the $VIX sits up 10%.
Hold onto your hats folks. pic.twitter.com/ZHWteBh9tm
— Stocktwits (@Stocktwits) August 2, 2023
h/t DOORBERT