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Next Up Spain: Ratings Revised To Negative From Stable By S&P, Still At AA+
Nothing to see here. Just an oncoming sovereign default freight train. Oh, and a total collapse in the euro.
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you just knew that Spain had to join the list. They have a mess there in housing, unemployment. I would suggest that they contact the US DOL's BLS division for tips on how to cure their unemployment problem.
Thanks for the info TD.
I see Ireland in the news today trying to fight off any ratings actions.
Commenting on the Spanish survey data, Andrew Harker, economist at Markit, said:
“The Spanish manufacturing sector looks set to endure a bleak winter period, characterised by falling new business, job cuts and heavy price discounting. The glimpse of a possible recovery seen during the summer appears to have been only a temporary reprieve, with even the stabilisation of demand now seeming some way off again.”
http://globaleconomydoesmatter.blogspot.com/2009/12/global-manufacturing...
All right, you can kiss goodbye to the Euro. And probably most the E.U. Maybe not right now, I'll be optimistic and give another 10 years at best, but this is going to be "beggar thy neighbour" and "every country for itself" now.
Maybe France and Germany, and some of the smaller northern countries, such as Belgium, Luxembourg and the Netherlands will be able to make the Euro survive for a few more years, but the stench of rot from "Club Med" (Spain/Italy/Greece) is becoming too much to ignore.
Good call, Mr Tyler Durden.
France is one of the big impediments to a strong Euro. As for Germany--why would they bother? They'd be better off with their D Marks.
A strong Euro has some benefits for France (cheaper imports) and it does most of its trading within the Eurozone anyway, so don't believe the over-heated hype from that country. As for Germany, they just want something "solid". You could say that Weimar Germany, and its political and historical consequences, made a hatred of inflation a part of German collective psyche.
Short EUR/JPY anyone?
Next up USA (unfortunately)
It shouldn't hurt the US. Goldman can float some Recovery Bonds for them if they back the USD as the world reserve currency for the next 300 years and denounce their allegiance to the Euro.
(And sell Ibiza to Lloyd for $10 million)
Benny B will just funnel them some money. Can't have their clusterfuck screwing up our clusterfuck.
Nothing to see here. Meh.
Like failure Friday ,downgrades will be sparingly handed out monthly if I'm correct the reviews are twice a year. 10 years is optimistic
As I said, what do the lemmings do INSTANTLY this news hits?
SELL GOLD. Buy the dollar. What else?
We must be living in some sort of parallel universe somewhere, one in which gold is somehow seen as "risky", while the dollar (if you have a 5-minute time horizon) is seen as SAFE...
Hey there,
I thought you would be interested in this ZH link. It discusses some new legislation that, in the long run, might explain some things (like the new Simon aquisition) going on in CRE, which in turn, might explain how some of your investments are acting. All a hunch, but the more I read, the more I think this is all getting cued up for round 2 of bailouts.
http://www.zerohedge.com/article/expensive-and-beautiful-silk-panty-garm...
The Fed is using a hell of a lot of ammo to convince the market gold trades as a risk asset. On that note, Norwegian Krone has weakened vs Euro on the back of Dubai, Greece etc.
Seems they haven't programmed macro-economics into the robots...
Kreditanstalt,
has somebody sold real metal or did somebody sell paper?
Metal seems to be in short supply again:
U.S. Mint now suspends all one ounce gold coin sales due to shortage of physical gold!
http://www.mineweb.com/mineweb/view/mineweb/en/page34?oid=94091&sn=Detail
Oh come on. They dumped 78 billion worth of worthless GOLD etf reciepts to comex who paid back in dollars not GOLD. That 80 dollar hammering to gold price was pure fiction.
If you see this, I don't know how to look this story up. Do you have a link or keywords?
I just love having my mind blown and getting angry at some bastard stealing from me... every fucking day.
I believe the term is "serial default" (cf. Reinhart & Rogoff, "This Time is Different", Princeton U. Press, 2009).
Good book.
So after sovereign default, is the solution a global currency? Or will it be the same old shit with the IMF growing with every 50 billion SDR oligation it racks up per default?
And in case you were wondering for the upcoming financial(hopefully) WW3: the SDR is made up of only debtor currencies, dollar, euro pound and yen.
As a regional currency, Euro is showing many cracks... Why a global currency would be any different? It'll fail before it is implemented.
Surprising to see Spain at AA+.
Spain: The Hole In Europe's Balance Sheet
http://www.investorsinsight.com/blogs/john_mauldins_outside_the_box/arch...
If Gundlach of TWC is right (and I believe he is) that the REAL US debt is approaching 60 trillion, then the us$ can be used at best as toilet paper and the Euro would therefore be strong, even if there is also a mess in Europe. If anyone has an idea in which currency to invest, I would be thankful !
barter currency (throwable lead)
suggested reading -- Patriots: A Novel of Survival in the Coming Collapse
We do things a little different here:
http://torrentpump.com/torrents/patriots-a-novel-of-survival-in-the-comi...
"We do things a little different here"
But you shouldn't. Reasons why:
1. author deserves compensation for work
2. unreadable when power fails
3. no substitute for a real book on the beach
I 100% AGREE. Please support Rawles by PAYING for his book. Besides, most of us have money here anyway.
If ZH readers are not reading Rawles survivalblog every day, then they aren't looking at how to prepare if this all implodes and leads to TEOTWAKI conditions.
Support Rawles.
"3. no substitute for a real book on the beach"
If you're sunning yourself on the beach reading a survival book I hope you at least remove all the tin foil covering your head and shoulders.
I'm just providing popular alternatives for savvy non-consumers.
Preppers don't all wear tinfoil hats. Most hope for the best, prep for the worst.
Ps-We appreciate the sentiment for the alternative, I guess. However Rawles has had a rough time lately with his wife passing away a short time ago. Stealing from a widower isn't really my forte'.
"I'm just providing popular alternatives for savvy non-consumers."
No you're not. You're promoting theft from someone who works honestly for his money.
Don't you realize that it is your Vampire Squid mentality (something for nothing) that is the root cause of this financial armageddon that we're all facing?
Can I interest you in some Dubai dirham, perhaps?
why not, they will perhaps convert them in oil !
And so the dominoes are tumbling, one by one, as the wild fire spreads from country to country. I love how the financial media says it doesn't really matter, since these are small countries. Right up until it does matter.
No FDIC backed bonds for them?.I guess they can all create a comitee"the FDIC backed soverign fund",and wolla we are back in business.
Mixed feelings here for a Spaniard.
I am so tired of criticizing the country only to get a reputation as a negative person. So I am kind of happy that the MSM will (probably) support my point today.
But I don't like what's coming anyway. And the 'news' is not important to this end.
At least my shorts are hot today.
Thanks for the news, TD, you were the first to post (in my radar).
So how does this compare to Dubai as far as an impact on the US?
I see how loans were made to Dubai and now they won't be paid back.
What is the direct impact on the US of Greece and Spain crumbling? Lower trade?
Total collapse of the euro? But, only the U.S. has high debt levels and banks with phony earnings, right? /sarcasm off
"Just an oncoming sovereign default freight train. "
You mean like that gold ramp that the $1200 level was supposed to trigger? Nice call.
Remember- Tyler Durden is a cult leader who dies in the end.
We all die in the end don't we? Better a cult leader than a lemming.
Add Ireland to the list. http://www.businessweek.com/ap/financialnews/D9CFNLK00.htm
Add Ireland to the list. http://www.businessweek.com/ap/financialnews/D9CFNLK00.htm
Here's some current data and graphs that someone put up recently on Spain.
http://www.deflationite.com/blog/?p=90
Housing Prices, CPI, PPI, Total Credit, etc.
The author claims that this is similar to other European countries.
Irish eyes aren't smiling
I wouldnt worry about europe. Where is the analogy to the total wall street bank bankruptcy? The trillion $ mortgage US fraud? The hundreds of outright US bank failures? criminal political class? The 5-10 trillion$ "bailout" of FNMA? The 12 million US citizens in foreclosure? Heck Germany alone exports more than the US.
In a way, these ratings downgrades are allowing the concept of default to be accepted. I've been saying for a few months now that I beleive smaller entities will be encouraged into default as it where, setting a precedent so eventually the US can do the same.
That's not to say there is any other alternative just that
the game is following a script of sorts that is visible from a distance.
Another thing, by loading all the debt into the Federal government just prior to the default, all the debt will be erased in one fell swoop.
-MobBarley
That is why dollar goes up. So, this is the new normal - massively inflated dollar is better than troubled euro.
If that is the case, and dollar even in its today's condition is the best currency available, we could expect a lot of problems in Eastern Europe.
Spain from the inside:
It's obvious I didn't get rich during the bubble years (my parents did and are now bankrupt).
*the 1050 € you get when unemployed* - OMG! just move with your VISA card to Thailand, India, Cuba whatever you like. It is almost impossible to spend such money here. =)
Well, if the Spanish system works the same as here in Germany, you have to be "available to the labour market" in order to collect benefits. That is, they must be able to contact you by phone/post, and usually, you have to show up regularly at the "labour agency's" office.
I don't know about Cuba, but in Thailand, it is next to impossible to get a long-term visa, which means you have to leave the country every 90 days or so to renew your visa upon re-entry (aka "visa run"), which is kind of a hassle, and after a while, they give you increasingly more trouble with the renewal. Sure, they want more-or-less affluent tourists to spend their money there, but they don't want surplus individuals from Western societies to disturb their somewhat different Asian ways by living there permanently.
Fuck Spain. All the grief that they have caused in the world. They are reaping the bitter harvest that they have sown. All the tonneage of gold they stole from the Americas whilst ethnic cleansing should have been saved or invested. Their Catholic influence has directly caused the one problem that destroys us all--overpopulation.
Hammer - has nobody told you that every sperm is sacred.
Get that, will you Dierdrie?