Money Market & Retirement Accounts’ Backstops vs. Downgrade

 

AAA-Backed Money Markets

&

Retirement Income Accounts

 

How Will Markets  React To AA

Downgrade?

 

Whether or not a downgrade would spark a sudden sell-off of U.S. Treasuries has …till now, largely gone missing from the national conversation regarding the debt ceiling.

Could a downgrade result in a scramble to replace these  double AA securities with alternative securities rated AAA?

The stringent requirements of certain money markets and other types of funds seems to be an matter of concern which has the potential to form a very big problem whose question …is one largely gone missing from the conversation in Washington as of late.

Opps!!! So has oversight for that matter.

But I feel that the public needs to know …this stuff could and will hit the fan if nothing more beneficial is not quickly done to reverse Washington’s “do-nothing” environment.

After all, what other replacement securities are there available which could qualify as equal substitutes is not a large question of greatest concern …I would imagine though, no?

The greater concern would be to avoid the resulting market havoc which would result in such an event …that which would result when the number of sellers would suddenly swamp out the number of buyers.

However, any sudden instability which most certainly will result in the market place seems to be not only a missing piece in the conversation, it is a considerable demonstration of how planning in Washington rather resembles Russian roulette.

Regardless, Washington’s leadership parts …those on either side of the isle …seems more preoccupied with more important things …like shame and blame …jockeying for a pole position from which to enjoy   a race toward 2012.

Fine kettle of fish!

In remaining blind to these and the many other consequences …by a measure of their lack of political will and lack of leadership, their destination of dogged obstinate determination seems more hell bent …on squandering a lower costing opportunity …in a possibility to leverage a viable chance to build upon hope …rather than one that seems more likely to end in another finger pointing match.

Pity that this opportunity is slipping through our hands …like sands in an hour glass!

So, it seems as though any  downgrade in  U.S. public debt is   an inevitability which will   rock treasuries.

Such as it is likely to be, such will rock treasury.-backed  Money Markets as well as any and all other retirement funds and trusts whose requirements stipulate that they be backed only by AAA grade securities?

So, could a downgrade actually spark and drive a scrambled-egg sell-off in a rush to replace these  (double AAs) with (Required AAAs) something  else …something more reliable?

Care to answer that “what-if …”would you?

Where’s that cute little  Energizer Bunny when you need the power of those AAAs …?

Here’s a cute call to raise the debt ceiling. It is a rap song gone viral on U-Tube. Check it out.

Both sides of the isle own this one …one and all, the president not withstanding.

http://www.youtube.com/watch?v=EoS52fVtVQM&feature=youtube_gdata_player

The video above contains a good deal of truth. More and more I have listened to reporters who are making statements which claim that America is becoming the laughing stock of the world.

Sadness prevails.

Washington is divided more and more each day.

The pall of both parties political warfare prevails.

Calmer heads need strength and courage to bring both sides together to seize the day and craft a solution …if the needed pieces of the puzzle can even be found to put humpty dumpty together again.

Until then, be strong and courageous …be very strong and very courageous.

In the meantime, solution may very well emerge in “NO!” no more than “Yes” has enabled a “Can” that both Republicans and Democrats have been trying to kick down the road …in and with little more than blame and shame.

Yes, it seems that the actual truth of it all will be realized instead, in truth of  …No! No, we can’t!

Any Discernment of any better judgment now must seek …a solution in HOW …to do more with less …even if the new more must be realized in a resolute assertive essence of a simple NO!

Why?

Because, I said so …and “Yes” will have still more dire consequences for which America has …till now not been well enough willing to even shouldered the responsibilities of what all needs must makes “Yes” work.

That is why now, today …must needs be a season of “No!”

Now   “…No!” is the solution which today …applies equally well into all dimensions equally well …especially with respect to this common man’s approach to taxation …as well as it does spending.

I believe that, if …I have to live within my means …Washington needs must also now learn how to wrap its head around the meaning of “NO!”

Washington needs to both say it and do it …and stand by it dutifully …efficiently.

Just, do it!

There is the only one way to the means which “WE CAN!!!” ….put an end to the insanity of “YES!”

Now more than ever, all Americans need to learn …not just the meaning of “No’s!” consequences …but the wisdom of this sort of judgment.

In the necessity of this, the wisdom and way of invention will prevail …and America will emerge stronger.

My prayer tonight …

My Dear Lord, my Father God …America does not even seem to be willing to realize the most certain dire consequences for being unwilling to take responsibility for having said “Yes” without forethought.

Therefore, strengthen this nation with your might and bring to our minds the joy of the opportunity to be thankful in the opportunity we still have by   offering this country the grace to realize the wisdom of working wisely in patiently with our vast resources.

Deliver us from evil. And today …above all else, deliver us from ourselves and lead us in our choice aw we seek unity …peace and harmony.

Amen

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