S&P: "We No Longer Classify The U.K. Among The Most Stable And Low-Risk Banking Systems"

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Thu, 01/28/2010 - 12:08 | 209172 Cindy_Dies_In_T...
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"the reputational damage we believe has been experienced by the banking industry, and what we see as the high dependence on state-support programs of a significant proportion of the industry"


I guess they need to "pretend harder" like we do in the USA.



Thu, 01/28/2010 - 12:14 | 209183 bugs_
bugs_'s picture

Who is next?

Thu, 01/28/2010 - 12:17 | 209192 Instant Karma
Instant Karma's picture

UK, Spain, Greece, Japan, US....there seems to be systemic risk re-asserting itself as Sovereign risk. Just like Tyler et al have said. Oddly, the US Dollar is the place to be as the risk trade in unwound, and you can't even hide in gold and other precious metals, as they currently trade as risk assets as well. On the other hand, with various markets closer to oversold than neutral, it's hard to go short here, either stocks, commodities, or foreign currencies. So, trading from the short side, you sell the blips and buy the dips, minding the overbought/oversold indicators. I'm liking to be short the Euro, Silver, and Emerging markets after they bounce substantially. China (FXI) has already rolled over through its 50 and 200 dma, while EEM and EWZ follow. FXE is tanking beneath 1.40. Now, I need a vicious bounce to sell into. I await in cash, which, by luck of birth, is in US Dollars.

Thu, 01/28/2010 - 12:25 | 209212 Cindy_Dies_In_T...
Cindy_Dies_In_The_End's picture

Oh boy, prepared to be junked by Metal Bugs in 3..2..

Thu, 01/28/2010 - 17:18 | 209921 Hephasteus
Hephasteus's picture

Metal bugs will only junk you if you come out and say something blatantly wrong and then assert that it's a certainty without any possible chance of parole.

Thu, 01/28/2010 - 18:35 | 210079 Rusty_Shackleford
Rusty_Shackleford's picture

Real "metal bugs" LOVE dollar rallies.

Thu, 01/28/2010 - 12:29 | 209220 GlassHammer
GlassHammer's picture

So if we all get a downgrade does that mean nothing changes because we are all equally terrible?

PS. The stern wording in this letter reminds me of the UN.

Thu, 01/28/2010 - 12:41 | 209254 Anonymous
Anonymous's picture

The new "Axis of Evil"

Thu, 01/28/2010 - 12:46 | 209275 SDRII
SDRII's picture

Uk is odd man out in Europe and Perhps a nice lamb for the US (dollar flight - with of course an implicit wink and nod). Japan also looks to be the odd man out - china reproachment coming? Awaiting the article from Pritchard on how the Uk will just print its way out while the Euro will drown on the weight of the PIIGS

Thu, 01/28/2010 - 12:53 | 209287 Anonymous
Anonymous's picture

"you can't even hide in gold and other precious metals, as they currently trade as risk assets as well."

The GATA Perspective: The CFTC actively ignores blatant manipulation of the silver and gold markets on the CRIMEX. JPM and others shorts are doing it on behalf of TPTB.

Use this as an opportunity to buy the physical. Screw the paper.

Thu, 01/28/2010 - 13:57 | 209450 Anonymous
Anonymous's picture

Gold is like air and sex: Not important until you can't get any...

Thu, 01/28/2010 - 18:40 | 210086 Rusty_Shackleford
Rusty_Shackleford's picture

When the real disaster strikes, the time to prepare will have passed.

Fri, 01/29/2010 - 15:04 | 211188 Anonymous
Anonymous's picture

How true!

Thu, 01/28/2010 - 15:24 | 209651 carbonmutant
carbonmutant's picture

Sound like its time for S&P to exercise some more "forbearance and delay in the announcement of a downgrade."

Sun, 01/31/2010 - 15:45 | 212593 Anonymous
Anonymous's picture

By Bugs B,
Visit SA AFTER WORLD CUP! Buy your ticket now! while you can!
and live forever in luxury at 1/3 cost of Northern Hemisphere

Tue, 05/18/2010 - 07:18 | 357753 Helen Burns
Helen Burns's picture

In practical terms I agree to the author of some article I found by http://www.mp3hunting.com SE saying that the only way you can be certain that another bank crisis is not going to happen, is to separate the solvent parts of the banks away from the risker parts. Treat the risker parts just like any other business when they fail. However unless this was adopted by the whole World it would put the Countries which do this at a great disadvantage. There is so much competition to have a financial Capital that I doubt this will happen. The secret is not in more regulation but better regulation. More competition in the market by splitting the big banks up and returning them into private hands. The regulation failed on many levels and a return to the regulation before the FSA would actually be sufficient.

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