A few things came to mind when I heard this news this evening.

First, it seems to me that there very well could have been a substantial leak re the timing of the downgrade, not that it comes exactly out of left field, but the huge drop on Thursday, the wild swings today (perhaps as the Treasury was pointing out some errors in S & P's calculations creating some doubt in the downgrade as the day wore on), and most of all, the way the royalty trusts were hammered more than most stocks on Thursday and again today (interest rate sensitive), and yes, I know oil has been hit, but it seemed those stocks got hit more than their share. And yes, I know the above sounds like the conspiracies I usually poke fun at, but there it is.

Second, it seems to be profoundly ironic that S & P, a huge player in the mortgage/CDO crisis, which should have then acted with the "courage" it acted with today, again makes a call that may have substantial negative consequences (this time immediate, as opposed to the time bomb they set in rating those CDO's triple A). I'm not saying the U.S. (I won't say "America") does not deserve this downgrade, I'm not sure of how such things are determined, but from what I know, it surely seems deserved, but I merely point out the irony. I'm sure this wasn't easy for S & P to do, just wish they'd have had that resolve in the mid 2000's. To me, the rating agencies were the most guilty of all parties involved in the mortgage meltdown, I give them 25% of the blame and spread the other 75% to all the usual suspects. But those guys had the power to put a stop to that madness and did not.

Third, I'd like to mention that GWR, a brilliant analyst of economic and financial trends and data, whose posts are factual and well-written and a pleasure to read, long, long ago told me that these (lowered standard of living, downgrades, etc) were the type of things the U.S. had in store for itself, given the manner in which the country was conducting its affairs. His calls have been Sinclair-like (but even he could not foresee the malaise with ECU or the junior miners in general). (Even with his extraordinary aptitude, I think I can handle him on the golf course, but you wouldn't see me anywhere on the ice with him!! LOL)

Fourth, wtf will happen over the weekend - Geitner and/or Obama speaking before the Asian markets open (they have to decide whether just having a "special" address makes too much of this downgrade, thus panicking people - it's a fine line - it may be better to give it relatively little attention). Perhaps our House and Senate leaders who spearheaded the compromise, trotting out their ideas on cuts and revenue, and reassuring the populace that they will do the right thing. Who knows, but I hope whatever it is, they don't overdo the hand-holding, it may convey exactly the wrong message.

Fifth, what will happen Monday morning (and beyond, of course). There are all kinds of permutations and combinations of things that will have played out by the time the dust settles. I only wish I could figure out which will obtain and prevail.

Good luck, everyone!