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Fitch Downgrades Spain To AA+
Fitch Ratings-London-28 May 2010: Fitch Ratings has today downgraded Spain's Long-term foreign and local currency Issuer Default Ratings (IDRs) to 'AA+' from 'AAA'. The rating Outlooks on both Long-term IDRs are Stable. Fitch has simultaneously affirmed Spain's Short-term rating of 'F1+' and the Country Ceiling of 'AAA'.
"The downgrade reflects Fitch's assessment that the process of adjustment to a lower level of private sector and external indebtedness will materially reduce the rate of growth of the Spanish economy over the medium-term," says Brian Coulton, Fitch's Head of EMEA Sovereign Ratings.
"Despite government debt and associated interest costs remaining within the AAA range, Fitch anticipates that the economic adjustment process will be more difficult and prolonged than for other economies with AAA rated sovereign governments, which is why the agency has downgraded Spain's rating to AA+."
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hey are they having to head west back into the City from the 'south shore of Long Island'?
Race to the bottom!
"It's just a flesh wound."
Until gangrene sets in and you're facing the choice of your leg or your life.
Watch out, the Black Knight Zapatero will bite your legs off!
I went looking for a picture of Zapatero and came up with a two for one special.
"Smile Luis, we are going to make so much fucking money."
"I want a purple thuede thuite and a pair of gatorth like the oneth you've got."
Two grinning socialists. These guys need somebody to give them a hotfoot.
Guess the Hamptons will become combo party/business meeting in one. Fitch just gave the Green Light to attack Spain. It's all over for the Euro... sad, the FIAT seemed to have potential.
Rich
Literally hundreds of FIAT currencies have come and gone up in smoke over the course of history. The USD or Euro are no different. The dollar is already down over 95% of its buying power (value) from when it was first introduced.
Well if Fitch says so...
LMAO
+10000000000000000000
rate of growth? There will be no "real" growth in Spain for years. The driver of its boom from 2002-2007 was property and construction, end of.
Where will the growth come from to continue the expansion of such an economy?
I was told they were a shining star example of the success of a "green economy". I think that will be their main growth engine. Green jobs are their future....
Or, maybe not... I'll step away from the crack pipe now :)
Ah, the irony. The previous post was on Spanish banks proclaiming everything is "fine".
Don't believe anything until it is officially denied.
Wow! The Spanish central bank LIED?!
"The last duty of a central banker is to tell the public the truth."
Alan Blinder, former Vice Chairman of the Federal Reserve
+1
If you pretend hard enough maybe it will come true. Its about the confidence game.
They have choose excelent time to publish the news and make the market goldman way.
Step up Moody's, Step up!!!
Look at that market drop; what a cliff. What's the news?
I saw that too ... anyone know???
For Whom the Bell Tolls by John Donne
No man is an island,
Entire of itself.
Each is a piece of the continent,
A part of the main.
If a clod be washed away by the sea,
Europe is the less.
As well as if a promontory were.
As well as if a manner of thine own
Or of thine friend's were.
Each man's death diminishes me,
For I am involved in mankind.
Therefore, send not to know
For whom the bell tolls,
It tolls for thee.
Hey, isn't that a Metallica song? the lyrics don't go like that...
BAM! SPX breached 1090 level.
Can you imagine....you leave the office at lunchtime to head out for your long weekend, hop on the train, then wham! Now that's hysterical!
Who are you and what did you do with Harry?
He's been sampling the red pills.
Um mm good.
Like that time you jumped on that airplane ... during the flash crash.
Financiers don't take public transport, you should know better!
(Black towncars aren't considered public)
Hey man, I still got a big bag of CDO's MBS and CBO^2's that are rated AAA. Maybe I could come up with a swap?
Repackage IG tranches and sell them to CalPers or TEMASEK, take HY ones and structure a CDO3 then sell said CDO3 to a Spanish pension fund and buy CDS on it from BBVA.
BAM BITCHES; INSTA-PROFIT.
Collect bonus. Enjoy the Hampton's.
LOL.
Yeah, i forgot to say; distort cash flows, use mark-to-mode and define volatility surface variables arbitrarily. they are too stupid to know how you priced all that; also pitch them that you bought them from another DTD for a higher price, but you need liquidity real fast and you are offering a discount. BAM. Its like taking candy from a baby.
Sad thing is we will probably be reading a story like this in a few months time on ZH. Your humor is much appreciated. I need the laughs.
Ah!! wondered if you were going to forget the prospectus, such fine literature.
+1^9
I doubt the savvy people at TEMASEK know anything about IG. But they certainly heeded the squids advice to bet against the USD, raised billions in USD debt, thinking they would make a killing when USD craters in no time. Then came the euro crisis. The pilipinos also did the same USD deal, and Malaysians too. So Asia next stop for the GFC?
QUANTO FTW !!!!!
QUANTO; the granddaddy of CDO2
glad I didn't eat before I got on this ride. . . drop! wheeeeeeeeeee!
Market went in free fall until it remembered that Consumer Sentiment was in line.
"Market went in free fall..."
And gold shows an inverse move during the same time. Interesting....
They must have forgot because the market fell again.
No one will be leaving the Hampton's! EVERYONE has Internet access, and will trade from the beach!
oh wait... and america still has AAA
:>
LOL
America, America... nice package, rotten content.
Look at this from a different angle.
They're all bad. America made an effort to sell its garbage debt to the world with a nice package from rating agencies all the while the world was distracted by America's war effort in the Iraq and Afghanistan theatre.
They pulled it off - again.
You have absolutely no idea how livid the world outside America is over this. None.
The world wants Harry Wanger's blood.
Ahhh gold...you never let me down.
The way the criminals at the Crimex tried to shitcan gold this morning ain't workin out so well.
Not too worry the robots have the market under control:)
Time for the Squid to squirt out another false rumor, to trigger a rally on the denial.
Hmm, Chinese holdings of Euro debt has been done, need something else ...
The ratings on countries makes no sense. Exxon Mobile has AAA and about as much cash as debt and income out the wazoo. A country that is negative every year, large debt load, and no stability or growth for the long term expected is AA+ and AAA? If you aren't making more money than your debt by a significant margin, how can you be rated anywhere above D? These ratings make no sense and never do.
Hotels are booked solid on Ibiza.
Of course if your jumping from the 3rd floor balcony you gotta be sure to hit the pool...
http://www.telegraph.co.uk/news/worldnews/europe/spain/7771577/British-t...
Ibiza is Spain only in a technical sense, the same way Monaco is technically France.
both have micro economies that bear little resemblance to the parent.
that guys landing is what Spain have got coming tho IMO
They did this on Friday afternoon before the Memorial Day weekend, hoping not to spook people? And they did it as late as they could without being accused of doing it at night in Europe. Do they think people won't see through this?
What does it take for a Sovereign to get to B?
Start at A?
Anyone else besides fast (losing) money crew buying the dip ?! :D
But.. it wasn't us ! It was all damn speculators !
We were all right prior to the wolf pack of crazed bankers making runs onto our beautiful financial sector and the economy as a whole (whore.)
We are all right, 30+% unemployment among the young is rather good because it will teach them family values and a good lesson into the future. (overextend while you can or while orgy last, or ELSE everyone else will and we will default anyway.)
This is kinda major news, no kidding...
Of course there were a number of people saying, there'll be fewer sovereigns with AAA soon. But somehow it occurs to me that PIMCO has had quite a run at steering the markets this way. Remember their thesis about "Ring of fire" and 2010 being the year of sovereign trouble - i mean they were jumping on this theme everytime they could, starting from the fall of 2009.
This is especially distressing considering CDO's consisting soley of mortgages sold to unemployed, alcoholic, crackheads were rated AAA by this organization.
Who takes rating clowns seriously anyone?
FITCH BITCH...soon they (and Moody's) will disappear.
ES_F back to bullshit mode.
Drops on heavy volume after downgrade, continues downtrend with EURUSD, then fucking decouples and starts moving up (not following EUR anymore) on almost no volume. Go fucking figure.
Hard to be short:(
Interesting EURO chart :
http://stockmarket618.wordpress.com
http://www.zerohedge.com/forum/latest-market-outlook-1
Besides their FITCH BITCH status they have the bad taste to publish the information after Europe's markets closed....ON A FRIDAY!
Who's interest are they protecting? The Europeans (by implicitly devalue the EUR currency, the only european asset besides futures that could be traded during the evening)? or The American institutions?.
I have my opinion....
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