S&P Downgrades Portugal Again To BBB-/A-3, Outlook Negative, Still Somehow Investment Grade

Tyler Durden's picture

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oogs66's picture

greece also downgraded

TheGreatPonzi's picture

DOW +5% to celebrate this.

John McCloy's picture

You would think these agencies would learn to downgrade prior to governments collapse.

oogs66's picture

And why do they think they can still differentiate  BBB+ from BBB from BBB- when its clear that they can barely tell the difference between AA and BBB! 

oogs66's picture

The guy who does Ireland must be out sick, and Spain must have begged not to be cut.  Moody's must be in a panic to get fresh downgrades out now too.

Rockfish's picture

Whats happening in Ireland?

A Man without Qualities's picture

Nothing that can be put off until tomorrow.

A Man without Qualities's picture


LISBON—The Bank of Portugal on Tuesday cut its economic growth forecasts for this year and next and said substantial measures will be needed to meet the government's deficit-reduction goals.

In its Spring Economic Bulletin, the central bank said it now expects gross domestic product to contract this year by 1.4%, more than the 1.3% contraction it forecast in its Winter Bulletin. It also cut its GDP growth forecast for 2012 to 0.3% from 0.6% previously, partly because of the effects of the government's deficit-cutting measures.

http://online.wsj.com/article/SB1000142405274870447190457623046377906988...

FunkyMonkeyBoy's picture

The Bernank has sent out the order on behalf of his masters:

"Europe must fall first. We need more time to loot the U.S."

Josh Randall's picture

Mad Max has a great point that a low Euro helps German exports

http://www.youtube.com/watch?v=03HHqPa2Zso&feature=player_embedded#at=1323

However Merkel getting kicked in the cat during these elections could mean the total end is near if the German people aren't willing to float this thing along too much further

TwoShortPlanks's picture

That woman could not get any more attractive.

Dr. Engali's picture

I agree. The Euro will collapse first as we get a strong dollar rally to shake out the weak shorts then we will see the mother of all fiat collapses.

firstdivision's picture

So at this pace we should see CCC in about 2 to 3 years then?

jkruffin's picture

Bubble Bubble Ben's in TROUBLE..................

Republican Lackey's picture

More inflationary news. Defaults flood the market with dollars!

oogs66's picture

looks like Ireland 10 year should hit 10% yield and portugal could cross 8% soon.  Not as exciting as the DOW 12,000 'round' number everyone loves to talk about, but can't be good.  Curves are all inverted and if anything seems the inversion is getting worse, at least in Greece.

 

TwoShortPlanks's picture

Yeah, Bonds Yields hit 10%, Interest Rates are set at 1%, and unemployment is skyhigh...how the fuck is that part of any sensible recovery???

The whole system is set to trip-up.

Racer's picture

It will stay investment grade until 5 minutes after it collapses to worthless

oogs66's picture

the BBB- for portugal is just a cruel trick. It will give dumb banks the hope its still 'money good' and probably let them fund positions cheaply at ECB, to ensure that when it finally goes, only dumb banks will own them.  Thus forcing governments to bail them out!  Hmmm...maybe not so dumb? 

TradingJoe's picture

Nothing "Blinks" anymore, as long as Benjie keeps printing! What a Tragedy we all have to witness! The world is hinging upon some old greedy seniles!

tallen's picture

I wish S+P set my exams for university. It would literally be impossible to not get a 1st.

Hannibal's picture

All socially constructed abstract numbers and digits on a computer screen, i.e. abstract fluff. It all doesn't matter.

rufusbird's picture

I suspect that the time spent to determining the ratings was more on the telephone than the spreadsheets...

scratch_and_sniff's picture

Yeah, sov downgrades already priced in.(they did it when i wasn't looking)

Widowmaker's picture

More fabricated bullshit from the ratings fraud cartel.

On a scale between 0 and infinity S&P gets a -14 which is above expectations in the land were below average is an asymptropic anomoly marked to make believe until premiums are paid.

Save us, Falcore, fraud-bonuses depend on it!

 

treemagnet's picture

S&P would probably rate a loan to my sister "investment grade"

Widowmaker's picture

Depends on how much your sister puts out and how much Diet Coke is in her fridge.

"Investment grade is fraud bought and paid."

sbenard's picture

News is irrelevant. Freedom is even irrelevant. We have printed prosperity now!

I wonder what is going to happen when news hits the market that can not be dismissed, on a day when everyone wants to sell and there are no buyers. Are we all counting on "the greater fool" to bail us out? Could get interesting!

midnight's picture

Financial terrorism

Papasmurf's picture

No need to be concerned.  All you do is package a bunch of these puppies into a government fiat bond fund with one dollar worth of US Treasury inside.  Then it can bear the rating of US treasury bonds.  That should help for a month or two.