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Stocks plunge following S&P downgrade
- btilly 15y agoIt is ironic that uncertainty caused by a US government ratings downgrade would lower interest rates on US treasuries. That said we could be in for more rough times soon. See http://bentilly.blogspot.com/2011/08/financial-stress-on-system.html http://bentilly.blogspot.com/2011/08/financial-stress-on-sys... for a short list of some of the big stresses that I'm aware of on our financial system. In particular look for anything suggesting that some big player is having liquidity problems. In particular I'm looking at Bank of America (it has a lot of mortgage problems it hasn't worked through, and was just given a ratings downgrade as a result) and various European banks (particularly if Spain and Italy head towards default). Liquidity problems have a tendency to spread as other institutions start being concerned about who else is a counter-party and is exposed to risk.