Moody's Lowers Hungary To Lowest Investment Grade Category Baa3 From Baa1; Austria Next

Tyler Durden's picture

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ZeroPower's picture

Austria before Belgium?

TraderMark's picture

15 minutes of super smart David Einhorn.  Depants America and the subsidy that is going from savers to debtors/banksters of America.  Says gold goes higher.

http://www.fundmymutualfund.com/2010/12/video-cnbc-always-eloquent-david...

westboundnup's picture

Moody's.  More Pest than Buda.

unky's picture

Any sources for Austria, please? I thought they were very well financed and have a similiar attitude towards money as switzerland and luxembourg

breezer1's picture

austria carries a lot of debts from the less worthy. enough to sink it.

Oh regional Indian's picture

The PIIGS are getting hung(a)ry. They were not allowed to slim down, now they will consume all.

PIIGS, PIIHGS, PIIHAGS, PIIHAPGS....

Poor EU, thor's hammer strikes, should never have messed with Iceland!

ORI

http://aadivaahan.wordpress.com

johngaltfla's picture

And if you look at the charts of the Austrian banks, it doesn't take a Cramer to figure out who is holding the bag with regards to Hungarian debt...

willien1derland's picture

Although I am certain that Moody's assessment is correct (albeit late) I cannot imagine that Hungary is the only country with issues?! I mean if Hungary is barely investment grade I would think it is a safe assessment that Greece is at the same or lesser credit quality - But then again Credit Agencies are IRRELEVANT -

potatomafia's picture

So does this mean that Austrian Economics wont help us out of this mess either??

 

;)

Snidley Whipsnae's picture

Austrian pols ignored Von Mises and listened to Keynes. It was Keynes that told the pols what they wanted to hear; 'save money in fat years and spend it into the economy in the lean years' Of course, the pols did not save money in the fat years....and Keynes was regurgitating what the pharos said long ago, but did not credit them.

Austria will soon wish it had listened to Von Mises....so will the rest of the world. 

eigenvalue's picture

They should listen to Frederich Hayek, who is their fellow countryman.

Id fight Gandhi's picture

Cnbc said everything is fine

cbaba's picture

Sovereign Wideners

Entity

5 Yr Spread

Change (%)

Change (bps)

CPD (%)

Spain

313.87

+5.71

+16.96

23.79

Italy

219.66

+5.16

+10.77

17.36

Hungary

370.74

+4.40

+15.64

22.53

Ireland

562.88

+3.76

+20.39

38.50

Austria

83.78

+3.67

+2.97

6.98

Portugal

443.05

+3.52

+15.05

31.64

Belgium

191.70

+3.48

+6.45

15.26

breezer1's picture

invest in hard currency, iceland. its frozen.

Clapham Junction's picture

When will Moody's downgrade itself?

We need one of those cartoons (the Bernank, etc.) about the rating agencies.

 

trav7777's picture

the entire edifice of 'debt' as an institution must be downgraded, because the future does not hold the growth to pay principal + interest.

All present debts, and vicariously, money, must be discounted.

Bring the Gold's picture

Global Jubilee is the only way out. Well the only way out that actually has a shred of humanity to it. Seems the Banksters want to jubilee themselves and become nobility over the rest of us as debt slaves.

If they aren't willing to give the rest of the world some buy in I think we will see a new set of Nuremburg trials after another global conflagration.

Disclosure: Long pitchforks, torches and rope...especially rope.

ZeroPower's picture

Except they won't be, and this notion of debt being money and vice versa will exist for on and on. I hope this is clear.

johnnymustardseed's picture

Moody's... really. Why does anything they say matter?

luibenat's picture

Luibenat from Italy, in Ungary there are also italian big banks, first of all UNICREDIT

Gimp's picture

How quickly the rating agencies have regained credibility after suspect ratings for the past five years. How da do dat, Barney Fawnks?

CABO's picture

Just like 1931 it will be Austria that will start the second phase of the depression. The Rothschild family bank Creditanstalt declared bankruptcy on May 11, 1931.   The demise of the Creditanstalt and the Austrian government was followed by a Global bank run, a financial crisis in Germany and an attack on Sterling, which was depreciated a massive 25 percent as a result. Afterwards, central banks began a run on the U.S. dollar, liquidating it for gold. The banks included the Bank of France, the National Bank of Belgium, the Netherlands Bank and the Swiss National Bank. The result was an immediate need to increase the interest rate in the U.S. from 1.5 to 3.5 percent.

These events triggered further panics and bank runs in the U.S. The U.S. dollar depreciated 40 percent; multiple bank holidays were called to contain the panic. The U.S. President Franklin D. Roosevelt forbid ownership of gold, in an effort to control inflation, and prevent the collapse of paper money .  The U.S. economy bottomed only in April 1933.

So keep a close eye on Austria’s banks…