When US markets fell 4-5% last Thursday……was the trigger advance knowledge of the S&P rating downgrade for the US which was released last Friday after markets closed ??!!
Monday, 8 August, 2011 10:36 AM
Posted by Kevin Scully
When US markets melted last Thursday (Aug 4, 2011) the data leading up to the sell off was inconsistent with the magnitude of the fall. However, with the hind sight of the S&P rating downgrade of the US from AAA to AA+ which was released last Friday evening after US markets closed, it would appear that the sell seemed to be in anticipation of the rating downgrade (ie Insider Trading).
On August 4, 2011, US markets sold off sharply despite the raising of the US debt ceiling apparently because US employment data was marginally weaker than expected. There were also growing concerns of debt problems in the EU for …