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S&P Relishes In Its Irrelevance, Says "At The Current Time, France Deserves Its AAA Rating"
The escalating series of simply tragicomic news out of Europe continues. Per Reuters, "France deserves its "AAA" credit rating at the current time, the president of Standard & Poor's credit agency told a French business daily on Tuesday. "At the current time, France deserves its AAA rating," newspaper Les Echos quoted Deven Sharma as saying in an advance edition due for publication on Wednesday." As we suggested earlier, France will not be downgraded by Moody's before 2014. That means S&P will last until France is rebranded the German Vassal Kingdom of Gaul before it notches the country even one rating lower.
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France is rebranded the German Vassal Kingdom of Gaul.
Finally!
Again, without much of a fight.
I'm thinking they will just re-re-annex Alsace-Lorraine and extend its borders to the channel.
the trees lining the streets of paris are still there from the last time the germans marched in.
sorry meant
Its a good thing the trees lining the streets of paris are still there from the last time the germans marched in.
Like similar situations, everything will be rated AAA until something blows then someone will scramble to put out the fire and downgrade after the fact.
This time when things blow up, the last thing on anyones mind will be the credit rating of a country. Just will be everyone for themself.
What are the Chinese saying?
My psychic concurs with S & P - France =AAA
Really - are we still listening to these agencies????
LOL.
OK let's see:
- Deficit level identical to Spain
- Debt level 30% worse than Spain
... and they keep a AAA rating for the next 4 years, even though Spain's is AA?
O....K....
Be careful - using that logic is likely to lead them to downgrade the US and we can't have that!
The are no flies on the French and they are doing unpopular but right political things (e.g. pension age). If the Euro falls, the French should still have a lot of gold reserves to create a backup currency.
S&P relishes in its irrelevance?
Actually "relishes" doesn't make sense in this context, because you don't relish "in" something. Perhaps you meant revels? Rejoices? I guess it doesn't matter - we know what you meant.
Well oddly enough I can see this. With as strong France is in the EU and ECB politically how can they not be AAA? I'm thinking Trichet and Straus-Kahn have their back, at least for now. Besides France is what at least 4+ bailouts away! Still have to go through Portugal, Spain, Italy, and Belgium before we can even think of the France default. One crisis at a time and all that.
You missed it. The market just went from checkers to global thermonuclear war. One day after the Irish "gift" the bond investors were shorting Italy, passing over Portugal, Belgium, and Spain. No more sequential country crises. It's all or nothing for the Euro now. If Ireland hands their "gift" back to the ECB the lid will come off sooner rather than later, but either way it's coming off.
Call me crazy but this pig still has legs to run a little while longer. Even if your right about all parts of the EU being at risk, which is possible, it does not mean it's over soon. After all look at the state funding situation in the US, it's a nightmare. Arguably the state problem is just as bad or worse then the EU periphery. So while it's possible the contagion spreads to the EU core, I think it more likely it pecks away on the outside or the ball gets spiked back in the US court for our big boys. CA and IL are both basket cases after all. Could get a lot of running room in Europe over a CA crisis in the US.
Don't get me wrong I think the EU is going down. They are going to be forced to go big or go home. So unless they wheel out a EU treasury and central bond issuing system I can't see it lasting. That should go over like a lead balloon. I think it's telling Merkle is trying to kick the can till 2013, buy a little time for a miracle, or a hasty retreat, or just pry it burns down and escape in the confusion. But then again that could be years away, which is seemingly an eternity to markets.
I agree with you. The US states are going to look alot like the EMU countries. Once the first is bailed out they will all have to be. The direction of the EUR/USD pair is not clear to me because the Fed is entirely capable of killing the dollar faster than the ECB kills the Euro. I am short EUR/CAD and EUR/AUD because I don't trust the Fed.
Hey! My script sez it's PIIGS, Eastern Europe, France & UK, then California (and others!), then Japan -- stick to the script, darn it.
The key to S&P's statement are those weak little words, "at the current time".This is the ultimate verbal hedge!
And by tomorrow? It may be different!
Sarkozy has short legs but long very long arms....and with strauss khan at the FMI...they both have, well...special connections...If S&P can say now that they will not downgrade France before 2014 it's propably more than just simple maths.
Estimated Zerohedge Members:
France-
"FRANCE: French 10-year OAT spread widening by 7bps vs Bunds to +53bps as
contagion spreads. Traders also cite unsubstantiated market talk that
rating agency is looking to place France on negative watch. No
confirmation of this so far"
So bye bye France---Too much risk in Spain and Greece by Socgen,Calyon -(Amundi Funds), BNP,Credit Mutuel.
Next ones are Dexia-KBC and Belgium, no mercy with the bankstealers.
In Spain u could short Banks(specially Banco Popular - POP SM EQUITY Till 0.60 euros before nationalization) Allianz (ALV GY HAS a roughly 10% inside...and voilá its and insurance company...)
Tsunami is coming...Deflation time...
Remulak Capital, LLC
For immediate release:
"Greetings. We are pleased that the human authority figures under the control of Standard & Poor's have analyzed the appropriate data and have assigned mass quantities of the human capital letter "A" to the public sector financial apparatus located in our place of origin. When my people come to colonize and invest in this planet, human adherents subscribing to Standard & Poor's structural analysis will be on the protected investor rolls. No harm will come to you and your portfolio. We hope to see our clientele at our annual company banquet at the end of this Earth year. We will of course be igniting our flame pit, where mass quantities of charred mammal flesh will be made available for our human client's consumption.
Beldar Conehead, CFA"
http://snl.jt.org/caps/characters/DaAy-Beldar%20Conehead.jpg
Right, and I "deserve" $Billions, why ain't I gettin' it?