Downgrade?

by Larry Levin

Below is a good video clip of The Kudlow Report in which Larry Kudlow interviews S&P’s global head of sovereign debt ratings - David Beers.
 
http://video.cnbc.com/gallery/?video=3000035313

This video clip was recorded before Speaker Boehner released at updated version of his plan to raise the debt ceiling and cut spending.  In short, his plan is to "cut" an average of $91.7 billion a year for 10-years totaling $917 billion.  
 
Of course almost all of it is back-end loaded, whereby only $22 billion will be cut in FY2012...but the deficit will be $1.7 TRILLION!  
 
Oh, but the plan also requires Congress to draft plans for additional $1.8 trillion in cuts, umm, sometime in the future.  Yeah, right!  Like that will happen.
 
If I were David Beers, my response would be: Epic Failure boys & girls.  You've been downgraded.
 

Trade Date: 7/27/11

E-Mini S&P Trades*

(before fees and commissions):

1. OTF buy @ 11:02am at 1311.25 = -.50 & -.50 (2 lots)

2. Algorithm positions (8)

3. "Reading the Tape" positions (4) ...combined Secret's, Algo, & "Reading the Tape" total...+2.50

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