Blog Credo

The whole aim of practical politics is to keep the populace alarmed (and hence clamorous to be led to safety) by menacing it with an endless series of hobgoblins, all of them imaginary.

H.L. Mencken

Monday, August 8, 2011

A Plausible Thought


Why has the downgrading of American debt led to a massive sell-off of stocks and a flight to....US Treasuries?

Could it be that a lot of people had shorted the market in anticipation of default and were looking to recoup their shorts?

Certainly seems possible to me.

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