Moody's Downgrades Operating Entities Of Belgium's Dexia, The Bank Most Rescued By The Fed, From A1 To A3

Tyler Durden's picture

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Troy Ounce's picture

burn, baby, burn

Thomas's picture

The whole thing is explained here in only 3 minutes...

http://www.youtube.com/watch?v=NOzR3UAyXao

Archimedes's picture

So what? the ECB no longer recognizes rating agencies! </sarc>

Transitory Disinflation's picture

Ratings Agencies = The new barborous relic

Sudden Debt's picture

En in Belgium politicians don't talk about the financial mess because that's the way to solve problems.

 

Our minister of finance on the european financial problems (this guy is running for ECB president...):

http://www.nieuwsblad.be/article/detail.aspx?articleid=DMF20110604_064

(article is in ducth)

 

 

GoldBricker's picture

C'mon SD, the guy is a walloon.

So, by his logic, as long as we don't talk about a Greek 'restructuring', nobody will suspect that there's a problem. You're right, that's the quality of the public debate here.

qussl3's picture

Whoops.....

And this bank doesnt have a govt to run to lol.

jeff montanye's picture

the post says were it not for government (france, belgium, luxembourg) backstops the bank would be rated five notches lower (below investment grade).

wandstrasse's picture

in other words: Sudden Debt

Franken_Stein's picture

 

Another day - another farce.

 

hugovanderbubble's picture

Ive told to LONG BELGIUM.....CDS

Sudden Debt's picture

The Belgium intercommunals and cities all have hughe stakes in Dexia.

The fact they downgraded Dexia means that Belgium in it's total will be downgraded in the comming weeks to.

And as our government will yet again fall this weekend it's a easy bet.

 

And this downgrade is also a kick in the balls for France. I bet Midget Sarko will soon appear on television again rambling about evil speculators again :)

 

disabledvet's picture

are you saying there's a vote of confidence in Belgium this weekend?

Sudden Debt's picture

The formateur is going to the King this weekend so that means he'll resign.

And they are out of formateurs (NVA doesn't want to do it) so we're going for elections after 400 days without a government.

 

GoldBricker's picture

I an expat living in Belgium. The papers here mention Dexia mostly in the context of its role as banker to local governments, called communes. The commune organization is the second-largest shareholder in Dexia, and in the past got a dividend on its shares, which was re-distributed to the individual communes. Now that the dividends have stopped, the communes have holes in their budgets. The central government was forced to provide guarantees (off balance sheet, most likely) just so that communes could borrow to cover the shortfall. So the communes have jumped from one falling domino to the next one in line. It's the whole crisis in microcosm.

Sudden Debt's picture

Yes, our taxes are also devided into 2 mayor parts.

1 part for the state

1 part for the city you live in.

And with the money the city receives they have to cover all the social projects like police, administration, infrastructure (besides highways) and social projects (housing for the less fortunate, immigration projects...) and all city works (water, electricity...)

 

They are in such a big mess that they'll be forced to raise taxes on their side, which is not a official tax increase.

But the govenrment itself also needs 28 billion in the next 3 years in extra taxes and that's about 9000 euro PER WORKING PERSON!! 3000 euro PER YEAR! EXTRA (on a already 48 to 55% tax on salaries and a 21% consumer tax on goods)

 

This shit is bad. Our governemt debt is 98% of GDP but if you include all the shit the intercommunals carry.... => 160%

 

AND THIS IS THE BEST PART:

THE GOVERNMENT COVERS ALL LIABILITIES FOR DEXIA!!! WHICH ARE UP TO 600 BILLION!!

3 million working people.... 1.2 trillion debt X 1.6 X 1.5 = CRAP!!!!

 

People finally are starting to realize what shit we're in these last few weeks. And that's just the tip of the iceberg.

 

 

qussl3's picture

Why havent you starting running yet? lol

disabledvet's picture

first off i do agree Sudden Debt should run for office--ideally as Sudden Debt!  2nd thanks for the learning curve.  i'm not a short seller or a gold bug--hopefully this is something that can be put to constructive use.

GoldBricker's picture

Thanks, SD, for the details. I'll vote for you too (as soon as I have my 5 years residency), as long as you're with a Flemish separatist party. My guess is that you are Flemish, given your perfect English. Keep posting.

I also read in the 'Metro' paper (Dutch version -- I'm learning), a free paper distributed in train/subway stations, whence the name, that Belgium and Germany and tied for highest tax burden in the OECD. By that logic, we should also have the best public services in the OECD (NOT!).

wandstrasse's picture

congratulations! You managed to describe an actual, practical example of a ponzi scheme in just 6 lines (on my cheap 17'' screen).

GoldBricker's picture

Thanks, Wandstrasse. Like your handle, BTW.

Alas, so many ponzi schemes, so little time.

Dick Darlington's picture

And in other news, now it's Telecom Italia's turn to be halted in Milan trading...

GoldBricker's picture

They're playing musical shares

JW n FL's picture

http://www.youtube.com/watch?v=PtIDKtaTz3M

Uploaded by on Jul 5, 2011

This week Max Keiser and co-host, Stacy Herbert, report on 'no buyers' at the firesale of Greek national income producing assets and on Ben Bernanke as the Taliban of finance. In the second half of the show, Max talks to economist Yanis Varoufakis about the bailout and austerity packages for Greece.