This S&P downgrade is to make money.This volatility in the market IS WANTED by the richest, the investors, filthy rich, esp, hedge-fund managers (the person with the greatest income last year was a hedge fund manager). They don’t want to make money the old-fashioned way by letting it build. They want the market going up and down in wild swings so they can make money on the sweeps up, as well as the plunges down (selling short, buying puts). This whole thing is about churning the market to suck out more money and do it faster.
And where does that money come from? Well, the not-so-rich — pension funds, 401k accounts, your retirement, your portfolio…
Then, of course, that money they extract gives them political and other power to take other things from you–more money, your rights, your health, your happiness, your country. sorry to be the bearer of bad news *sarcasm*
i worked the market online for over 10 years (off and on, full-time). it is set up to suck money out of the unsuspecting (notice those e-trade ads, e.g., they want to attract the “innocents” is the message, not that it is so easy a baby could do it).
There is insider trading, and market-making..outright manipulation. The regulations went out the window, so you have a fairer chance at gambling. (I’m serious. One of the richest gamblers in the world shunned the market after, as he put it, he “got robbed.”)
thr’s shitloads of $$$ to be made in volatility. speculators gonna cash in on just the threat of default… still more if it would happen. there’s no incentive for sanity in our system any more
They make money buying equities at the lower price and selling them higher, but they make money on the slide down, too, buying up puts and shorting the market. that’s how Goldman Sachs came out gold in the big crash of 08. They don’t have to buy low, sell high. they can sell high, buy low. they make money either direction. ALL THE MARKET HAS TO DO IS MOVE. There is absolutely NO FINANCIAL INCENTIVE FOR STABILITY in the market. (i did it with my stash too, till they cleaned me out with insider trading, and such)