Bruce Krasting: On the S&P ratings move

08-06-2011 • ZeroHedge.com

We have just a few months before the next explosion. S&P has put the US on a negative alert. Meaning further downgrades are going to happen if the US fiscal house is not put in better order. Folks, that CANNOT HAPPEN without substantial cuts in both Medicare and Social Security. So over the next few months when Harry Reid and Nancy Pelosi tell us that there will be no cuts to these mega programs, respond by immediately shorting the stock market. If Obama sticks in the mud and says, “We will not cut SS” the Dow will fall 500 points. This will be a gut wrenching process. The fate of the nation now rests on it however. Either these programs get contained in a meaningful way or everything we have come to know and love about this country will go into a two-decade collapse. . It Was Leaked This article/chart from FTAlphahville makes the point that US long term rates had one of the biggest runups in years yesterday. How did that happen? Easy. The info that S&P would make a move after the close was leaked. There are insiders all over Wall Street that got the "heads up". What kind of system is this?