Investors are almost begging to own US Treasury bonds, with rates hitting the record low of 2.14 percent for the 10 year bond today.
The S&P downgrade of US debt has caused a stampede to buy US debt and not a rush to sell it. Interest rates fall and not rise on fears of a global recession.
S&P looks ridiculous in the markets. The firm that was a main reason for the financial meltdown as it gave a AAA rating to subprime mortgage pools that were toxic waste deserves all the ridicule heaped on it.
Meanwhile its action and the disastrous debt limit debacle have raised the risks of a double dip recession in the land of 2.14 per cent 10 year government notes.