Thats certainly good news. When you talk about marching higher, thats exactly what the stock market has done over the past two years since two years ago today, on this floor, when the Dow Jones Industrials dropped some 635 points after the Ratings Agency said forget it, no more aaa rating for the United States because it truly felt that because we had raised the debt ceiling, but didnt make the spending cuts, that this country was going to the dogs, and guess what, look at what the stock market did back then. They fell dramatically, as i said, dow jones fill 635 points issue but it was the percentages here. Nasdaq fell dramatically, and, of course, you could say it is what happens today is not that big of a deal. Its just down 47 points, but the downgrade be damned as they say. Okay. Get got to get to the floor show, phil, and imex and cme. Ben, two years ago, we were here together, and at the time, people questioned what was happening with this. I look at that and say, look what the markets have done. We have a chart from two years ago, a steady march, double digits per scene tajes higher for the dow, nasdaq, and s p. Im sure they feel confident in the quality of work, but the market moves on. Truth be told, the fact of the matter is the downgrade had an effect on the bond market, but it also drove people to invest in equities wisely enough. If you had not made that choice two years ago, the stock market is a better investment. Liz its interesting because, you know, back then, they cut the aaa rating to aaplus. Guess who else is in aaplus today . France, the aisle isle of man, austria. A place you want to go to, isle of man. Liz tax dodginess over there as they say. Big money. Liz they say its going to be awful, and today, i here nay sayers saying somethings about to happen. Well, the tendency for any professional trader is to try to look for the worse possible scenario. Ive been looking for a correction in the market that just has not come, frankly, and im willing to admit to the fact, but the fact of the matter is look at the big picture, and the big picture says the money in the bond market stopped going in, and a lot of it is now all coming out. The flow numbering seen from over the weekend suggests money is coming in. Theres a dismal report on friday liz talking about money coming from bond funds going in now, finally, to equity funds. Better late than never. If you stay in bonds, the beating you take is just getting worse. Its in the a bad time to buy equities right now. There should be a correction for the health of the market, but to the upside, theres upside potential in fact market. As earnings get belter, pe ratios stocks trade on are cheap as well. Theres a reason to take the money out of that equation and put it on our side. Liz go back to work and ill go to gary. Thank you. Liz youre welcome. Like, im losing money, liz. Let me get your perspective because duoyears ago, the one interesting thing that happened and now you see where it is today, and it has certainly fallen back. This country is on much firmer footing, is it not . Oh, it certainly is. Well, you know, again, back to the pricing on the gold. We saw it today drop just a hair under that 1300, but it came right back up, and i think theres going to be a large correction on the upside, on gold, as we saw two years ago. Well, two years ago was not a correction, but a speculation on this. Well see gold continue to slowly rise up now. Remember, its considered mostly a currency war more than anything else. Theres the decorative side to it, but its based on the currencies and whats happening. We saw the dollar today dropping again, and its holding underneath there. Theres no real push. Theres a lot of lack of confidence in the market as your prior guest was saying. Everybodys looking for that huge, huge correction, when its going to come, nobody knows for sure, but were all bracing for it. Liz well, it might not be huge. It might sort of be water torture just a single dripper, a drop here and there, and tom riley, looking at whats happening in the energy complex, theres a little to the downside today. Yeah, i know. I think weve taken a break here. Its quiet here today. The volumes were not there. The traders in europe start the holidays in august that happens every year. I think, you know, above a hundred, and we tried to go through 110, up to 109 and change and pulled back. I think we took the reigns between 90 and 100 and moved it to 100 and 110. I think well sit here for a week and digest whats going on, and, you know, if we go higher, its on news from the middle east, and if we go lower, its on the selloff in stocks. Liz okay, listen, theres breaking news that at least the yankee haters among you might like. Arod has been suspended for the rest of the 2013 season without pay and all of the 2014 season. Now, this was not unexpected, certainly. Major League Baseball and the yankees apparently had an inordinate amount of evidence that arod participated in using performance enhancing drugs, but the deal was handed down. The deal that came through, if there is a deal, because arod was digging heels into all of this was simply that he would not cop to a lot of things, and it is effective thursday, august thursday, august 8th, when it is well, thats today, isnt it . Isnt today august 8th . Oh, its the 5th. Oh, thanks guys. They were like, you scared me. Youre a yankee fan; right . Im a yankee fan, a new york fan, i met Alex Rodriguez on several occasions. You know, new yorkers are fed up, i have to say. Liz i completely think thats how they feel. They want to see the oldschool players where you actually won because you were that good. Right, all i can say in his favor is he loves baseball. You know, to be banned for life; right . Liz its not, though, thankfully, not for his sake, but 2012 is done, 2013, and 2014. After that he can play. I was doing apple. Liz thats more important to the viewers. Thank you for the baseball update. The update on apple, a big deal here for apple today because the administration now stepped in and overturned u. S. Trade panels decision that really has a more favorable effect, and this [inaudible] u. S. Trade representatives vetoed the ban, and now way were seeing is that u. S. Customers will be able to have access to the older phones and the like, u. S. Trade representatives said its great for the u. S. Economy, great for the u. S. Consumer, and, ultimately, good news for apple too. Liz in fact, we have coming up in the program, a tough columbia law professor who is an expert in all of this, and were qoing to have him weigh in on this because the last time an administration in the United States jumped into a patent fight like this was way back in 1987. Is it ratings is it a probusiness move for the Obama Administration . Well see. Nicole, thank you very much. All right. We have to get to peter barnes because as we mentioned two years ago today, the u. S. Got downgraded when it came to the Credit Rating, and there was a special reason for it. We raised the debt ceiling, but the impression on behalf of s p, wrongly, if you look how the market performed since then, was simply that there were not enough cuts at the time. Guess what . Its all coming to pass again. Peter barnes in washington, d. C. When does the clock run out . When does the clock run out, liz, did you say on the latest debt ceiling . Liz yeah, uhhuh. It already ran out back on may 18th, and it is but, as you know, the treasury is doing a special and extraordinary measure to stay under the debt ceiling by not funding federal pensions and pensions for federal employees, not using this Foreign Exchange fund that the treasury has, so for now, we wont well be able to pay the government can pay bills probably until after labor day, according to the treasury, probably into october, possibly november, and i do want to point out, though, that standard and poors feels a bit better about the partisan divide here in washington now. Not that it wont continue, but if it does, its not as potentially damaging, especially after the budget deal at the beginning of the year to raise taxes and raise the debt ceiling to may 18th and now longer. In a new report last month, s p Analysts Expect repeated divisive debates over raising the debt ceiling this fall, but they expect them to conclude without provoking a sharp discontinued cut in Current Expenditure or debt service, critical to global investors, and, quote, the stable outlook indicates our view that the Downside Risk to the aaplus rating on the u. S. Have receded to the point that the likelihood that we will lower the rating in the near term is less than one in three. In fact, s p analysts are more worried about the improving deficit picture, and that it will create complacency in washington about tack 8ing tackling the nations debt problem. Liz . Liz peter barnes in washington. We could see this again, although, of course, we realized, the first time its a shock. Second time, people say, yeah, weve been here before, seen it before. Two years ago, all the traders dealt with the fall of the Dow Jones Industrials of more than 635 points because a credit Ratings Agency, whose reputation already on the line after the financial crisis making bad calls back then, s p said that our credit worthiness here in the u. S. Was not up to snuff. Forget that warren buffet came on fox business right away and said, yes, it is. The fact is ratings agencies, do you believe them or not . Well, since the financial crisis, a brand new one sprouted up,croll. The president is going to join us to talk about what they do differently and now they feel about s ps calls. The president of croll coming up. Were live from the new york stock exchange. The bs used double miles from their capital one venture card to fly home for the big family reunion. You must be garths father . Hello. Mother. Mother traveling is easy with the nture card because you can fly any airline anytime. Two words. Double miles this guy can act. Wanna play dodge rock . 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Do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. Do not drink alcohol in excess with cialis. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid longterm injury, seek immediate medical help for an erection lasting more than four hours. If you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. Ask your doctor about cialis for daily use and a 30tablet free trial. Io liz two yearing ago today, it was actually tonight, so august 5 th, a friday night two years ago, and we saw the flashes that the s ps Ratings Agency cut, for the first time, the credit worthiness of the United States from aaa to aaplus. Look and see how the cable and broadcast networks covered this breaking story. Watch. Standard and poors downgrades the u. S. Governments federal debt. The Credit Rating agency, standard africanamerican poors, downgraded the Credit Rating for the First Time Ever tonight. The longer term issue here for the United States will be more psychological than well see impacted in the financial market. Lets go overseas to see how investors are reacting there. The Credit Rating clippedded, aaa, best in the world since 1917. Not anymore. Liz okay. Everybody panicked, but guess what, was it really the correct call . We are joined by somebody who works at the Ratings Agency that sprouted up after the credit crisis, kroll. As we see what the markets did back then, since then, they have have jumped exponentially. Was that the right call . No, the wrong call for a couple reasons. First of all, look at the u. S. , its the reserve currency of the world, has been the reserve currency of the world since the 50s and 60s, and continues to be the reserve currency of the world, so you have to look at it in a different way. Secondly, i think that they were looking for redemption after the crisis. Liz you mean s p . S p, looking for redemption and thought this was good will, but it backfired. The u. S. Treasuries continue to be, as they were right after they downgraded, continue to be the ultimate safe hain. Liz but you used to work at a Ratings Agency, fitch . Fitch, yeah. Liz what you do differently from there than s p now that youre at kroll not to make that mistake . Well, this was just one of many moves by s p that, frankly, has been inexplicable. I think they really made bizarre moves that have really scared the market, and i think that one of the things that has to happen is to bring credibility back to the market is that youve got to, first of all, act like a grownup, behave like a grownup, but do your homework, do diligence on things you rate, and give the market enough information that they can evaluate your analysis and come up with their own conclusion, and either agree or disagree with you. Liz the criticism that lies in the model of the ratings agencies in that they are paid by the very firms they are covering. That was not necessarily so with the United States, not states t when you say they were things that scaredded investors, dont you think that ratings agencies shouldnt be in the business of worrying about whether they scare investors, but they just have to get it right. Well, i think if you give investors information and that scares them and that. Nformations right, thats a if inconsistency and bizarre movements when s p pulled the deal, the commercial Mortgage Backed deal on the eve of its being offered to investors changing the criteria, that scares investors in a bad way because that erodes confidence in the rating agencies, and the fixed income markets need confidence in the Ratings Agency to work properly to be liz now, when he looks and sees what the market has done since two years ago today; right . The s p, the nasdaq, jumped, 40, 50 , unbelievable. Does that give anybody confidence in how the big ratings agencies from prefinancial crisis really make incorrect calls . Our credit war thyness was not up to snuff, aaplus, on the same level of france and isle of man, i just dont get it. Its interesting. You raise another issue, and that is you have to be able to explain the rating in the context of other ratings. Liz right. Its fine if they downgrade the u. S. For the appropriate reason, but back then, treasury secretary geithner said youred moo eeling is flaw your modeling is flowed, i believe, by a million or more dollars. That gets 20 what happened that to what happened that day. Sent analysis to treasury, treasury sent the fact they were off by a couple trillion dollars and rather than taking the weekend to evaluate their model and their analysis, they came out with a different analysis and went ahead with the downgrade, which i think just made people scratch their heads even more. I think they werent able to convincingly explain to people why finland was aaa and the United States was aaplus, why they continued to rate auto deals aaa. Thats auto loans, you know, pool of auto loans aaa, and the government was aaplus, and in order to downgrade the United States, you have to be able to answer those questions, and it has to be a rational answer. Liz gym nadler of kroll, and its fascinating to see what the free markets does with new Ratings Agency. I hope its going well for you. It is. Liz jim nadler, president of kroll. Thank you for joining us. You know who else is aaa . Leech stein, lux upberg, and the United States is not. If you have time warner trying to watch cbs, the summer let down. Its rare for a network to launch series that do extraordinarily well in the summer. Its a testing area when viewership is slow, but guess what . Cbs had just done it with two shows that were doing beautifully, and now what does it mean . Will they lose out from their winners because of the deal and the nondeal with Time Warner Cable . Stay tuned, were coming back live at the floor of the new york stock exchange. If youve got it, you know how hard it can be to breathe and man, you know how that feels. Copd includes emphysema and chronic bronchitis. 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