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EU Prepares Law To End Influence Of Rating Agencies, Tells Banks To Police Themselves
HAHAHAHAHAHAHA............The end is near!!!
I like your screen name; it's one of those engineering phrases that brings your reading of the textbook to slow crawl while you try figure out exactly wtf they're talking about. The name of the thing itself has always delighted me also, "rotating wing aircraft"/ yeah, great. The craziness is built in. I committed aviation many times and lived to tell about it but only in "real aircraft" that have those wonderful strong metal wings you can see out the window that hold my poor fragile white ass up.
Wonders aloud whether this will include Dagong.
The Emperor has banned mirror stores........
Things must be pretty bad.
it's just preemptive...
Just look at those euro coins! They look like gold coins!
We've got all sorts!
We've got the Greece eurocoins where rates are at 20%
Italian where rates are at 12%
and German once... they aren't worht that much because the rates are pretty low on those....
BUT THEY ARE VALID IN THE UNITED STATES OF EUROPE! or make that the "union"....
What's this - the idiots guide to starting a bank run?
LOL. That's clever. There's a book called "the tradgedy of the Euro"; that explains the genesis of the common currency and the mechanisms of it's European Central Bank, (some missing, and some non-functional); what we have already seen is that their very brave and strict rules that gave wealthy investors confidence in them have been thrown out and now they just react to crises, and "print to order"; and yes, it doesn't seem like a very confidence inspiring anouncement.
Who has the copy right on AAA?
The American Automobile Association?
American Avalanche Association?
A-1 Apocalypse Assayers?
American Alcoholics Association?
Asshat Association of America
There was a rumor once that "Moodys" had a big rubber stamp that said AAA on it and they just flipped through piles of proposals and bonds, and stamped everything within reach; the desk, the telephone, the back of their hand, etc. It would make a nice cartoon video, I think.
suggestion: just change the faces and it's deja vu all over again
EU needs to go easy on the ouzo.
Lawyer up bitches! We got contracts to rewrite.
Edit: Isn't this the criteria that many contracts use to help determine if a the collateral is no good anymore and the loan needs to be called in? I'm pissed if I am holding one of those contracts.
Yes, it has a "quasi-legal" status. your retirement fund, or whatever, may be prohibited from owning things that didn't get the AAA stamp. In the case of the Banks it's like the American "well, just mark the value to whatevah"/ with reference to the "capital reserves" that the bank holds. The ECB anounced a while ago that would buy Greek Bonds, "no-matter what they were rated"; basically admitting defeat in this attempt to do the impossible. The Euro was engineered by a couple of French Socialists in order to avoid the ongoing embarrassment of French Franc devaluations in the face of the relatively more stable Deutschmark; it worked fine for its intended purpose, printing as much money units as "necessary" for the various social services; the problem is that it's intended purpose was bullshit; and that is now coming home to roost.
Just... wow. This is so moronic that I'm having trouble finding the right bitingly sardonic quip to respond with.
Is today the 1st of April? Am I missing something?
We need more discussion of when it becomes impossible for US funds to hold European assets. No investment-grade rating = no investment, in many quarters of the market.
Someone sneak a question in to PIMCO on this. Or CALPERS. Or Vanguard.
When all you possess is a hammer, every problem looks like a nail.
When all you possess is a hammer, every problem looks like a nail.
Barnier may want to reconsider his statements, also. Shooting messengers publicly does little to shore up what little CONfidence remains.
*Even if some of the messengers (Fitch, Moody's) are wholly and entirely incompetent/criminal.
Gloves are coming off
this is a healthy sign - NOT! I'm not even sure you get a pop on in the market on this news before banks sell off. I hate the rating agencies, and think that the regulators have relied on them too much, but a knee jerk reaction like this smells of desperation.
More extend and pretend. Allows banks to turn junk into gold. Its the Midas touch!
Flash: My own rating agency has upgraded my performance
I just told a client dealing with a bank on a commercial workout to tell them that he is rejecting their version of reality regarding his fiscal soundness, and replacing it with his own.
I do hope this ploy works and/or buys him more time.
am I right, now your own central bank can print some more yummy money for you!!
freaking priceless...hope you got gold or silver
Nope. Gold has been rated Junk by the EU.
GOOD IDEA! Should have let WaMu regulate themselves too!
Ooops. We did. That didn't work either....
Ha! WaMu had a AAA rating bougyt and paid for with share holder money . Other AAA frauds Fannie Freddie.
Desperate re-arranging of the deck chairs on the Titanic.
You may only price risk based on what we tell you to price that risk.
Of course gold has no counterparty, so holding on it as your reserves is not subject to this decree. Just a thought.
"the European ponzi is unravelling faster than Lady Gaga's costume at next year's VMA" ....lol
Remember when they changed the US Bank regs so that they marked their assets to model, instead of marking them to market? That was balls to the wall outrageous and no one did anything about it. This is just as outrageous, will anyone do anything about this? I bet not.
Yes, It seems to be kind of a trans-atlantic infection of the same disease. I would say, that some people did do something about it; they lowered their expectations for, and their confidence in, the banking/financial sector and changed their savings into Gold and Silver; and this process will probably be ongoing.
as I already posted, according to the EU constitution, sovereign default is FORBIDDEN. They just comply with legislation, I do not know what this fuzz is about.
Yes. Well, sovereign default is not necessary to wreck a Fiat monetary system. a.), and b.) changing the rules for your banks is not good for confidence, or public opinion. Well, not perhaps public opinion, but let's say the opinion of the wealthy. c.) these kinds of accomodation usually inflationary.
Shoot the messenger! Oops, just shot my foot instead, I'm bleeding...help ECB plz help me...what a world, what a world....
Glocks will do that
Instead of focusing on the problem, they marginalize those who merely point out the problem.
It's not like the ratings agencies are actually any good at that, even.
the emperor has no clothes!!
he still has clothes on, but they are cheap and ugly.
And made in Bangladesh or Sri Lanka (no offense whatsoever to Bangladeshans or Sri Lankans; just pointing out the irony of what would be - you know - sweat shop made clothing for the emperor and such).
Banks policing themselves...what can possibly go wrong with that?
Calling all Bozo's. This is beyond hilarious.
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