Moody's Downgrades Spain To Aa2, Outlook Negative

Tyler Durden's picture

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99er's picture

This Time It's Different

While the Dollar has caught a bid, the commodities complex (including precious metals) is taking a beating. /ES is poised to fall out of its Diamond Top and the long-standing up channel soon. This may well prove to be "Bloody Thursday." Take a look....

Ferg .'s picture

It has that feel about it . I certainly hope stocks head lower but in any case the range is tightening and soon we'll have a violent breakout in some direction .

whopper's picture

Today on CNBS Europe, they were trying to put lipstick on the pig saying that the debt is managable, Spain wasn't as bad as Greece and that this was "better than expected".  I can't wait for the whole shithouse to explode, I am so sick of the BS.

Dick Darlington's picture

Debt looks like manageable when one looks just the polished surface enabled by Maastricht criteria. But the problem with Spain is the huge private sector debt and the debt loads of government which are outside the reach of the ridiculous Maastricht criteria ie off balance sheet. Edward Hugh has written abt these problems in his "Spain economy watch" -blog.

Oh regional Indian's picture

Santandar...... ftw!

but again, a quick look at the Axis of Evil-doings sez Spain is the bomb. Greeceet. al. are side-shows.

And spain is the leap into Sud America.

Leaping flames....



Meme Iamfurst's picture

can someone explain why the Euro is not par with the dollar.  Just one good reason will do.

Josephine29's picture

This is a problem because government bond yields have been rising again in the Euro zone which has not been reported in many other places apart from ZH. I notice that the economist Shaun Richards has been pointing out the problems that Spain and Italy face which would open a new much larger front in this crisis. Here are his thoughts on the problems of controlling public expenditure in Spain.

Moving onto the Spanish government it has a record throughout the crisis of always doing the minimum possible apart from hyperbole where the Finance Minister Elena Salgado has usually done the maximum possible! But whilst its position and authority has weakened even in Spain there is a deeper problem. It only represents about 25% of Spain’s public expenditure with the rest mostly spent by the 17 regional governments. Of these very few publish accounts at all leading to concerns about overspending.


He poses a worrying problem/issue for Italy too...

THE DORK OF CORK's picture

With China going into deficit and Germany's surplus declining - we could soon be in the absurd postion of tiny Ireland providing a trade surplus to the entire world.

However to achieve this Great Maoist goal   we must instigate a second Great Famine in the spud country.

You cannot make this stuff up, well yes you can - you just need a farcical FX / Fiat / Corporate globalist soup kitchen.


Ferg .'s picture

Promising development for Euro bears . The combination of that Spanish downgrade , weakness in futures and pessimistic statements from Nouriel Roubini this morning have set the stage for a fairly decent decline . 1.3750 would be a fair target for today ( and a level at which I'd expect buyers to come back into the market ) .

All depends on equities though , we've got clear triangles on the Dow and S&P ( bottoms of both are currently being tested ) . If we break lower then I'd expect a vicious rally in the USD .

jesse livermoore's picture

Shouldn't gold be exploding up on all this news?????????????

whopper's picture

that is what scares me these days. Seems like PM's sell off on bullish news.

zaknick's picture

Moody bitches wouldn't be doing this if the US wasn't about to collapse. Allies, bitches. Lay down with dogs....

overmedicatedundersexed's picture

unless taxes world wide go up to economy stopping levels ..Moody's ain't got enough staff to down grade each nation's debt tsunami..

EU should be at junk, US at junk, now.

Ben will be forced to QE III and more but Moody will find no problem keeping us AAA.

Moody will be last to see the ben has no clothes.

Pegasus Muse's picture

"Moody will be last to see the ben has no clothes."

That's what they get paid to do.

Buck Johnson's picture

Spain is an inch from the cliff and everybody knows it.  What should also be looked into is Italy and it's finances, it can't be good that Lybia isn't supplying it with the oil it needs and that much investments come from Italy.