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S&P Cuts UK Outlook To Negative

Tyler Durden's picture




 

The drainage of AAA quality collateral contonues as S&P cuts it outlook on the United Kingdom to negative...

  • *BANK OF ENGLAND OUTLOOK TO NEGATIVE FROM STABLE: S&P
  • *UNITED KINGDOM OUTLOOK TO NEGATIVE FROM STABLE BY S&P

more as we get it...

 

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Thu, 12/13/2012 - 13:29 | 3059953 Fips_OnTheSpot
Fips_OnTheSpot's picture

Ho! Ho! Ho!

Thu, 12/13/2012 - 13:49 | 3060033 max2205
max2205's picture

Didn't even wait till friday after the close....what's up with that!

Thu, 12/13/2012 - 13:58 | 3060064 TruthInSunshine
TruthInSunshine's picture

Cue up TIMMMMMMAY!!! Hurry!

We need a "there's no chance the U.S. will be downgraded [again]...absolutely zero chance..." again...

Thu, 12/13/2012 - 13:57 | 3060063 The trend is yo...
The trend is your friend's picture

this could only mean one thing, moar QE from them = higher stock prices....STFU and BTFD.

Ben

Thu, 12/13/2012 - 13:29 | 3059955 Lost Wages
Lost Wages's picture

Step by step, Wall Street and Germany are tag teaming the UK into oblivion.

Thu, 12/13/2012 - 13:43 | 3060001 Ghordius
Ghordius's picture

+1 for the strangest comment of the day, so far. you are not alone, two weeks ago someone was claiming that the EU is all about enslaving the English race

you do know what unique role banks in the City play in all this mess, don't you?

you do know what the Bank of England is doing, lately, don't you?

Thu, 12/13/2012 - 14:03 | 3060074 TruthInSunshine
TruthInSunshine's picture

Germany?

Germany has...like actual companies that produce...like actual products, dude. They even export them, and they don't contain wiring that will burn down your garage/house/office.

The UK is home to the original collection of Vampire Squid Parasitic Drain Banks/Financial Firms, mostly headquartered in London, and all part of the fractional full fiat reserve scam (we conjure fiat from thin air, capture representatives of "sovereign" people, then loan that fiat to their government) that not only don't produce wealth, but destroy it forever, after picking off some lusty "bonuses" to keep amongst them and theirs.

Poof! It's gone!

Thu, 12/13/2012 - 14:29 | 3060146 trollin4sukrz
trollin4sukrz's picture

It really is too bad Germany didnt do a better job in WWII.. There would be a hellova lot less banking problems today if they could have destroyed London completely and totally. But now we are all being fed upon by the parasites. Where is Hitler when you need him?

Thu, 12/13/2012 - 15:43 | 3060443 TruthInSunshine
TruthInSunshine's picture

Hitler! Nazis! Hogan's Heroes! Hitler! Nazis!!!  Hitler!!!!

 

(I'm playing up that card for you.)

Thu, 12/13/2012 - 15:45 | 3060515 Wile-E-Coyote
Wile-E-Coyote's picture

Ummmm wasn't it Reagan and Thatcher in the Eighties that started deregulation, if you are going to bomb London carrying on flying onto New York.

Thu, 12/13/2012 - 16:01 | 3060571 TruthInSunshine
TruthInSunshine's picture

I've maintained all along that New York City (the place and institutions it contains) is the sister-parasite city to London, and for all the very same reasons.

Parasitic, massive drag on the rest of the country, with wealthy destroying enterprises and scheming that depends on the taxpayer host's mammary gland for constant feeding.

Thu, 12/13/2012 - 16:28 | 3060679 Ghordius
Ghordius's picture

yeah, but OUR Parasite City has the Royals. and the Westminster parliament. and history and culture and plenty of euroskeptics and bedbugs and eurotrashers and Greek, Russian, Arab and Chinese tax-haven oligarchs and cameras, cameras, cameras.... oh, my, soooo many cameras...

Meanwhile YOUR Parasite City has only a cute French bronze holding a candle or so and our gold. Ha!

Ehm...

Uh...

Oh...

 

care to swap?

Thu, 12/13/2012 - 16:37 | 3060718 TruthInSunshine
TruthInSunshine's picture

I think the only redeeming thing about New York City is the Pizza.

I couldn't stomach a Royal Family, Queen or Monarchy, even if symbolic; that would definitely put me over the edge.

Thu, 12/13/2012 - 16:47 | 3060763 akak
akak's picture

You've got to be fucking kidding.

"New York pizza" is an oxymoron --- that paper-thin crap is unworthy of the name. 

Chicago deepdish is the sine qua non of real pizza.

Thu, 12/13/2012 - 17:57 | 3060971 falak pema
falak pema's picture

lol, this is worthy of the great salami battle between Bologna and Florence.

The Best Salami in the Country - Forbes

Thu, 12/13/2012 - 14:07 | 3060082 Popo
Popo's picture

The fact that the UK has a massive hand in the current crisis isn't the point.   The point is that this will (and must) eventually turn into an "every nation for himself" situation.    Until now there has been massive collusion between the central banks because they believe that a unified front can insure stability.  This is untrue.  The problem is that stability is a phantasm.  It's not going to be achieved over the long term because it is only being achieved thus far via unsustainable means.   So as it becomes increasingly clear that stability cannot be maintained, it will also become clear that coordinated action cannot be maintained.

Who will be the losers in that next chapter?   Easy answer:  Japan and England.   They are the weakest players at the table, and they will be thrown under the bus.

Thu, 12/13/2012 - 14:29 | 3060148 HoaX
HoaX's picture

every nation for himself

 

Very true Popo, but in this case it is only coming from the UK itself, with their great hero Nigel Farage and constanst frustrating of any European financial sector reforms.

Many still want them to be European partners and they could have easily been as influential as Germany, France or Italy if they had been a bit more constructive in this sense.

 

Thu, 12/13/2012 - 15:58 | 3060505 falak pema
falak pema's picture

"When thieves fall out..." has been a continuous emphasis of some on this ZH site. 

The current Uk conundrum is epitomised by two tendencies: Boris of London and Nigel of Porridge.

Boris of London is the perennial shill who touts the essence of Maggie's oligarchy farm : Oligarchs of the world unite in London town, the greatest white washing machine in the world, thanks to Euro-dollar become petro-dollar legacy post 1971-1973 BW revoke and Dear Henry's Oil guaranty "poke" in ME super-shuttle sick joke.

So Maggie inherited that and made London the crown jewel of Oligarchy world, both Oil-arab and Gas-Russian post Elstine.

But...that has the inconvenience of making the Brits the worst whores of the western world; whence Nigel of Porridge and "we're british" meme; all the while sucking the teat of Murdoch's empire (the man has to live).

Now UK economy is doing the great splits, as neither will make it Nirvana UK of Elizabethan/Victorian shangri-la.

Rough ride ahead...if the EURO zone pulls the plug on City free for all...Yikes! 

And...WS now has to fend for itself..."Sorry UK, special relationship is an expensive business, we can't keep bailing you out"; unless we have a WW3!

In which case we'll call you...don't call us! 

Thu, 12/13/2012 - 15:51 | 3060538 No Euros please...
No Euros please we're British's picture

Hey, isn't that what women have when they're faking it? A phantasm?

Thu, 12/13/2012 - 13:50 | 3060032 Tsar Pointless
Tsar Pointless's picture

Well, they operate by the old adage, "If at first you don't succeed, try, try again".

World War I didn't work. Neither did World War II.

If this is the third time, I suppose we should be prepared to be charmed.

Thu, 12/13/2012 - 13:59 | 3060067 The trend is yo...
The trend is your friend's picture

leave them alone already, have you seen the brit's skin and teeth? that should be punishment enough

Fri, 12/14/2012 - 06:27 | 3062084 maff
maff's picture

The man who can dominate a London dinner-table can dominate the world (Oscar Wilde). Still true today.

Thu, 12/13/2012 - 13:32 | 3059957 camaro68ss
camaro68ss's picture

Thats BS, cut that S*** to the triple hook CCC bitchez

Thu, 12/13/2012 - 13:29 | 3059959 SheepDog-One
SheepDog-One's picture

So when is S&P going to cast it's critical gaze over the totaly bankrupt worse-every-day US and downgrade it?

Thu, 12/13/2012 - 13:30 | 3059964 doomandbloom
doomandbloom's picture

Splendid!

Thu, 12/13/2012 - 13:34 | 3059969 JustObserving
JustObserving's picture

When will they learn not to mess with the Anglo-American banking empire?  The last time S&P downgraded the US, the CEO, Deven Sharma, lost his job in just a few days.

Gadhafi lost his head when he tried to introduce the gold dinar for Africa.

Thu, 12/13/2012 - 13:32 | 3059972 SheepDog-One
SheepDog-One's picture

No worries I guess as all that really matters now is Pelosi spoke and cashed in her puts, Boner going to speak and probably cash out his calls.

Thu, 12/13/2012 - 13:32 | 3059973 Catullus
Catullus's picture

Apparently if you don't target unemployment, then no one's going to know you're serious about it. They should take a "radical change" and focus on an unrelated statistic to determine when they should discontinue money printing.

Thu, 12/13/2012 - 13:33 | 3059974 JackT
JackT's picture

Tally Ho!!

Thu, 12/13/2012 - 14:45 | 3060221 Lord Peter Pipsqueak
Lord Peter Pipsqueak's picture

No that WAS London,this is London now:

http://www.youtube.com/watch?v=-1b9J8D3tOg

http://www.youtube.com/watch?v=LVjr5awhxdg

Anyone fancy coming over for a holiday?

Thu, 12/13/2012 - 13:35 | 3059977 resurger
resurger's picture

Am really Shocked!!!!!!!!!!!!! really

Thu, 12/13/2012 - 13:35 | 3059982 youngman
youngman's picture

Losing another AAA rated country...and gold and silver going down......lol...

Thu, 12/13/2012 - 15:56 | 3060557 ThirdWorldDude
ThirdWorldDude's picture

Blame it on deflation...      /sarc

Thu, 12/13/2012 - 13:37 | 3059987 buzzsaw99
buzzsaw99's picture

what about moody's? (they have the best reputation ;)

Thu, 12/13/2012 - 14:38 | 3060186 ShorTed
ShorTed's picture

I'd like to +50 you for the sarc...well done.

Thu, 12/13/2012 - 13:37 | 3059989 Id fight Gandhi
Id fight Gandhi's picture

Surprised? no. Expected? Yes. Will it change anything? Nope.

Thu, 12/13/2012 - 13:38 | 3059991 Flakmeister
Flakmeister's picture

Re: Neg. watch, About bloody time....

The problem with Thatcherism is that you eventually run out of North Sea oil...

tm Flakmeister 2009

Thu, 12/13/2012 - 13:40 | 3059997 Bam_Man
Bam_Man's picture

They (the Bank of England) are obviously not printing fast enough.

Thu, 12/13/2012 - 13:42 | 3060002 jubber
jubber's picture

I say that's a pretty bad show ole boy.

Thu, 12/13/2012 - 14:12 | 3060100 Randall Cabot
Randall Cabot's picture

A bloody bad show ole chap!

Thu, 12/13/2012 - 13:48 | 3060008 Mercury
Mercury's picture

Maybe the Fed's next new mandate will be to get first world sovereign credits back up to AAA.

Once you convince yourself that money printing begets wealth there really aren't many constraints to how/where that kind policy tool can be applied.

Thu, 12/13/2012 - 13:45 | 3060009 Glass Seagull
Glass Seagull's picture

 

AAA is soooo 2011

Thu, 12/13/2012 - 13:47 | 3060017 spinone
spinone's picture

Good for Treasuries

Thu, 12/13/2012 - 13:49 | 3060031 Cassandra Syndrome
Cassandra Syndrome's picture

Is triple A cardinal or ordinal? In other words are they just benchmarked against how relatively woeful the nations of the world are? If everyone eventual loses Triple A, by what means is Triple A rated? Does a new batch of Triple A nations emerged on weaker fundamentals than 5 years ago?

Thu, 12/13/2012 - 13:49 | 3060034 Schmuck Raker
Schmuck Raker's picture

France's fault.

Fri, 12/14/2012 - 04:08 | 3062034 Heweliusz
Heweliusz's picture

Everything is France's fault anyway!

Thu, 12/13/2012 - 13:52 | 3060041 max2205
max2205's picture

There a mic on the S&P bus...watch it boyzzz. there big janet with a strap on waiting for you in your max prison cell

Thu, 12/13/2012 - 13:55 | 3060052 firstdivision
firstdivision's picture

Pretty sure it doesn't matter much anymore since the various CB's of the world quite caring about what rating agencies say.

Thu, 12/13/2012 - 13:56 | 3060058 NEOSERF
NEOSERF's picture

Rating agencies don't seem to understand if there are no more AAA countries, then AA will suffice as top paper and all the Policies will simply be revised to allow the same amount of investment it.  Chicken Little Politics...

Thu, 12/13/2012 - 14:14 | 3060104 Cursive
Cursive's picture

@NEOSERF

Using that logic, Fitch, Moody's and S&P should just give 'em the triple hooks right now.  Would take a lot of weight off of their collective shoulders.

Thu, 12/13/2012 - 13:56 | 3060059 Jason T
Jason T's picture

Japan is gonna blow next year .. that'll start the domino

Thu, 12/13/2012 - 14:14 | 3060103 swissaustrian
swissaustrian's picture

Downgrading a central bank, now that's great. What was the idea behind it? Is the printing press broken?

Thu, 12/13/2012 - 14:15 | 3060113 StoleYourMoney
StoleYourMoney's picture

Wait til they cut the US credit rating this month!

Thu, 12/13/2012 - 14:23 | 3060134 SheepDog-One
SheepDog-One's picture

CCC is the new AAA....rejoice jolly good show!

Thu, 12/13/2012 - 14:36 | 3060172 Lost Wages
Lost Wages's picture

As long as everyone is downgraded to CCC together, it will be OK.

Thu, 12/13/2012 - 14:51 | 3060251 HoaX
HoaX's picture

“I am not going to speculate about the future decisions of rating agencies,” Osborne said. “My job is to maintain credibility. What I see in the current environment, with a lot of problems elsewhere in the European continent, is that the U.K. is something of a safe haven.”

https://www.youtube.com/watch?v=jHPOzQzk9Qo

 

Thu, 12/13/2012 - 15:00 | 3060300 Lord Peter Pipsqueak
Lord Peter Pipsqueak's picture

The new Goldman ringmaster Carney,is now showing his true money printing colours and has recently said it may be necessary for the UK to have a different target for the BofEngland instead of the current 2% inflation target(which as everyone with an IQ bigger than their shoe size has realised was not being followed - growth was the aim)he now wants to consider growth targets,which in a country with an economy as bombed out as this would only mean one thing- massive money printing to send GDP positive-not real growth of course but forget inflation -that is so 70's,growth to reduce unemployment,the return of house price inflation is what the UK populace want.

Those stupid enough to have not overborrowed to buy a house-(sorry money making machine)-and saved for their future and made pension arrangements,well they are going to be thrown on the proverbial fire. 

http://www.dailymail.co.uk/news/article-2246924/New-Bank-England-boss-Mark-Carney-hints-tear-rule-book-economy-moving.html

Thu, 12/13/2012 - 16:49 | 3060773 Canucklehead
Canucklehead's picture

Carney's comments should be taken with a grain of salt.

What he basically said is he wants to replace one bogus number (inflation) with another bogus number (GNP).

As both numbers are bogus, the only indication given is that he intends to print.  There is no news in that.

The $64 question is what happens to the bond market?  An exit strategy is the same as a strategy to play musical chairs.  You need to ease your way out and you can't wait for that last chair.  Once out, where do you go?

Thu, 12/13/2012 - 15:26 | 3060424 giggler123
Thu, 12/13/2012 - 15:37 | 3060449 Scalaris
Scalaris's picture

Complete and utter poppycockery.

I say, those dastardly S&Ps should be hanged, drawn and quartered under Lambeth bridge.

Thu, 12/13/2012 - 15:35 | 3060466 tradewithdave
tradewithdave's picture

Highly unlikely. I saw the professor in the video with the gold. He had really long hair like a real genius. There was a lot of video gold. They are very rich. This downgrade must be some sort of mistake. If not, they would self-implode. That could never happen to a bank... even one with a printing press. Remain calm and carry on.

www.tradewithdave.com

Thu, 12/13/2012 - 15:43 | 3060497 Wile-E-Coyote
Wile-E-Coyote's picture

Here in the UK it is shit. Low wages, no wage growth and rampant inflation. We are on the road to punary.

Lol... today on the news the queen was at the bank of England inspecting the Gold vault, I bet she was making sure her stash was still there.

Thu, 12/13/2012 - 22:54 | 3061742 smiler03
smiler03's picture

Low wages, no wage growth and rampant inflation.

 

Indeed it is, the rest of the world is, Low wages, no wage growth and rampant inflation.

Punary? Fuck knows what that means except that you can't spell.

 


Thu, 12/13/2012 - 15:48 | 3060524 NEOSERF
NEOSERF's picture

2 years from now they might actually cut the rating which is really helpful for investors...rating agencies seem to be less a proactive helpful analytical organizations bent on ferreting out issues that money managers may not know about.  Too frequently now, they are 2 years behind and simply hold the keys to policy cuts that have to happen once they downgrade as everyone knows should have happened years earlier.  And even then if there are no more AAA countries then those policies are busily being rewritten now to allow crappier collateral for whatever "investment" needs to invest in them...we can play this game for decades longer...

Thu, 12/13/2012 - 23:11 | 3061775 smiler03
smiler03's picture

If ratings ever meant anything then why the fuck were US Mortgage backed securities (AAA) the downfall of the global economy?

 

It is obvious and simple to anybody apart from 90% of ZH morons who cannot see beyond their bibles...

The US is the most corrupt, fucked up, out of control, unscrupulous, nefarious, perfidious, foulest piece of shit that has ever existed.

Or put more simpy, using a popular ZH contributor: akak

akak backwards spells kaka which is hebrew for shit

With ambassadors like ZH contributors, it's no wonder that the world hates you ignorant twats. 

Thu, 12/13/2012 - 18:48 | 3061068 Venerability
Venerability's picture

In the same announcement, S&P also cut its ratings on Yorkshire terriers, cilantro, treadmills, sweet potatoes, soap, April, mimes, break dancing, and its research director's Cousin Dorothy, who forgot to send him a birthday card last year. 

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