• Sprott Money
    05/06/2016 - 06:03
    The US, in its own decline, is showing this same self-destructive tendency. The worse things get, the greater the inclination of the citizenry to say, “Carry on, everything’s fine.”

Egan Jones Triple Hooks Italy: Boots The Boot To CCC+ From B+, Watch Negative

Tyler Durden's picture


And another country falls to the Egan Who juggernaut.

Synopsis: Italy and its regional governments need to rollover approximately EUR183B in 2012 and EUR214B next year and is likely to experience increasing yields and restricted access without external intervention. Yields on the 10 year bonds are near 6.5%; rates have been rising despite prior ECB purchases. Future intervention by the ECB and IMF will provide some liquidity but might subordinate existing creditors. Italy cannot support all of its debt if the EU economy falters. Debt/GDP will continue to rise and the country will remain pressed. We are downgrading from " B+ " to " CCC+ " , with a neg. watch

Look for the "reputable" raters such to follow suit in downgrading Italy in 2-3 months.

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Wed, 07/25/2012 - 13:54 | 2650029 zero19451945
zero19451945's picture

I rate them G for Garbage.

Wed, 07/25/2012 - 13:59 | 2650047 NotApplicable
NotApplicable's picture

Why does Egan Jones hate freedom?

Wed, 07/25/2012 - 14:35 | 2650195 Silver Bug
Silver Bug's picture

Let's just get it over with and rate it all trash. It is what it is.



Wed, 07/25/2012 - 14:38 | 2650206 The Monkey
The Monkey's picture

Add the Fed, and the next market correction is likely 3-4 months out as well.

Wed, 07/25/2012 - 14:00 | 2650052 buzzsaw99
buzzsaw99's picture

Who made EJ pope of the ratings dump?

Wed, 07/25/2012 - 14:16 | 2650105 Dr. Engali
Dr. Engali's picture

Maybe because they are the only ratings company with any integrity. Or maybe you would refer an entity to go under with a AAA rating by three"competing" firms,like...oh let's see.....AIG. 

Wed, 07/25/2012 - 14:23 | 2650128 buzzsaw99
buzzsaw99's picture

it was a joke, Italy, pope, ratings dump, get it? Lighten up Francis before I stick my big toe up your butt...[/sgt. hulka]

Wed, 07/25/2012 - 14:25 | 2650146 Dr. Engali
Dr. Engali's picture

Oh my bad.Usually jokes are funny Carrot top ;->

Wed, 07/25/2012 - 20:38 | 2651518 Buck Johnson
Buck Johnson's picture

It's about over and when it goes it will be ugly.

Wed, 07/25/2012 - 14:00 | 2650050 HelluvaEngineer
HelluvaEngineer's picture

Oh.  That explains the rally.

Wed, 07/25/2012 - 14:10 | 2650084 Diggintunnels
Diggintunnels's picture

No it's QE fever again.  Get out the crack pipe Ben...

Wed, 07/25/2012 - 14:00 | 2650055 youngman
youngman's picture

The facts they use in their reasoning are dead on....need to raise lots of money...its more expensive if available at all...if a central bank buys it...the other bond holders are subordinated...and if the economy falters which it looks like it is...revenues down.....good call Egan-Jones I say

Wed, 07/25/2012 - 14:02 | 2650058 vote_libertaria...
vote_libertarian_party's picture

Not there's anything wrong with C's...


(I hope he has food testers and remote car starters)

Wed, 07/25/2012 - 14:03 | 2650062 NaiLib
NaiLib's picture

Immedeatly the "1330 Protection Team" set in a charge.

Only those handling other peoples money buying. Preferably taxpayers.


I am astonished that we do not see any real selling from hedgefunds. But perhaps they are all long and working together trying to preserver their speculative holdings.

In Spain the regulators have effectively swept awauy any potential buyer in case os a real market meltdown. Shorts gone which means zero buyers when it happens.

Wed, 07/25/2012 - 14:13 | 2650098 NotApplicable
NotApplicable's picture

Hedgefunds are caught up in the ultimate game of prisoners' dilemma. I'd guess the only thing that keeps it going is loyalty and its daily rewards front-running Fed/Treasury ops via the various Wall St. cartels.

As long as Corzine, Dimon, Blankfein, et al. walk around as successful, free men, the game will continue as designed.

My guess is that there all just trying to survive until the next false-flag distraction, when they'll be given new opportunities to plunder.

Wed, 07/25/2012 - 14:26 | 2650064 Dr. Engali
Dr. Engali's picture

Sean is going to get the mafia after him as well as the sec.  The sec is already going to send somebody in to break his knee caps.

Wed, 07/25/2012 - 14:08 | 2650067 spine001
spine001's picture

Egan Jones has been the only rating Agency that didn't outright lie in the 2008 financial crisis. Italy contrary to the rest of the PIIGS could repay lenders, but only if it went back to the LIRA.

Wed, 07/25/2012 - 17:00 | 2650806 ejgej
ejgej's picture

It is a false illusion that Italy would pay back everything by the Lira. It would be possible only by a devaluation that would destroy the same Lira and the economy after one year....Italy won't let the Euro, simply because when it entered the Euro its debt had already peaked to 115% GDP, the deficit was higher than today, and the economy was stagnating since 8 years. Italy with its own Lira ante Euro was in un such a bad mess, and paid interest rates high about as today! Lira wasn't working so fine, let's not forget it...

Ante Euro Italy couldn't devalue its money so easily as some like to tell, because when it did it in the 70s the inflation was almost destroying the social and industrial tissue, and in the 80s the country preferred a big debt to devaluation, so to have more stable conditions for business. When they say that by devaluating your own money you solve almost all the problems, they're plainly lying, and Italy has already lived this kind of illusion...

Wed, 07/25/2012 - 14:05 | 2650068 HD
HD's picture

Well, if you're going by bra size - things are getting better...

Wed, 07/25/2012 - 14:12 | 2650070 Jlmadyson
Jlmadyson's picture


Wed, 07/25/2012 - 14:06 | 2650074 magpie
magpie's picture

If they had only thrown out Sicily earlier.

Wed, 07/25/2012 - 14:07 | 2650078 Jlmadyson
Jlmadyson's picture

Applying defibrillator......1 2 3 clear!

No pulse Chief Bernak uh I mean....Hilsenrath.


Wed, 07/25/2012 - 14:10 | 2650083 vas deferens
vas deferens's picture

CFTC Commissioner Bart Chilton


"I believe that there have been repeated attempts to influence prices in the silver markets.  There have been fraudulent efforts to persuade and deviously control that price.  Based on what I have been told by members of the public, and reviewed in publicly available documents, I believe violations to the Commodity Exchange Act (CEA) have taken place in silver markets and that any such violation of the law in this regard should be prosecuted."


source: http://www.cftc.gov/PressRoom/SpeechesTestimony/chiltonstatement102610 

Wed, 07/25/2012 - 14:34 | 2650186 ParkAveFlasher
ParkAveFlasher's picture

"attempts", "efforts" ... not "acts" or "success at manipulation" ... which I further read the same as the difference between "grand larceny" and "breaking and entering".  Felony vs. misdemeanor. 

His last call on an announcement of the investigation's findings puts it at election time.  How droll.

His next-to-last call on an announcement of the investigation's findings was July 1st-ish, which btw, happened to coincide with the LIBOR story breaking. 

Guess what?  Blonde Bart doesn't care about your fuckin monster box. 

Wed, 07/25/2012 - 14:10 | 2650087 JohnKozac
JohnKozac's picture

Netflix is now down 24% ...and counting....

Reality is setting in but will it be infectious?

Wed, 07/25/2012 - 14:12 | 2650095 FieldingMellish
FieldingMellish's picture

Of course, we are going to get to the point where the pendulum has swung too far the other way. Not there yet, IMO. OTOH, we could see a reset of debt which would vindicate these ratings. I think bailout ad infinitum is more likely.

Wed, 07/25/2012 - 14:13 | 2650097 lolmao500
lolmao500's picture

Next up : downgrading the UK to the same level. Same goes for Japan and the US. Even Switzerland should be downgraded a notch because their banks are way overleveraged.

Wed, 07/25/2012 - 14:19 | 2650124 Winston Churchill
Winston Churchill's picture

I'm going to write In him in in November,now RP has rolled over.

This guy has priciples.Blind spot for the US,but not for much  longer.

He may want to pre pay his funeral expenses though.

Wed, 07/25/2012 - 14:14 | 2650101 earleflorida
earleflorida's picture

'Egan Jones' --- man, I like that name!

It kinda rings a rebellious tone of fiscal anarchy, whilst the terrorist... that being the central planners are finally burrowing into a molten pit of capitulation. 

*that's it boy - smash the head down upon the spear like a pumpkin... and don't forget to bathe it in tar for the castles gargoyles torch. thus smelling... of the sweetness of revenge for the peons below. feasting on the quarter`d entrails below, with an insatiable appetite for justice served coldly roasted   

Wed, 07/25/2012 - 15:50 | 2650523 GMadScientist
GMadScientist's picture

I'm betting you tailgate by yourself alot.

Wed, 07/25/2012 - 14:16 | 2650109 SmoothCoolSmoke
SmoothCoolSmoke's picture

20 mins later, Euro popping ???????

Wed, 07/25/2012 - 14:20 | 2650126 Meesohaawnee
Meesohaawnee's picture

better back the truck up on TNA then..

Wed, 07/25/2012 - 14:24 | 2650141 miltiadis
miltiadis's picture

If Euro falls what will happen to the rest of the world?

Wed, 07/25/2012 - 14:29 | 2650162 surf0766
surf0766's picture

Then the attention turns to the U.S with higher debt loads and spinless politicians who will not cut government 50% and not cut taxes 25% to generate organic growth.

Wed, 07/25/2012 - 14:35 | 2650193 Haager
Haager's picture

The Euro has already failed - people are just neglecting the facts.

Wed, 07/25/2012 - 17:04 | 2650828 ejgej
ejgej's picture

as long as people can neglect a fact, that fact does not esist...

Wed, 07/25/2012 - 14:56 | 2650282 PiratePawpaw
PiratePawpaw's picture

The engine of this train has already gone over the cliff, it just hasnt hit the bottom yet.

As for the rest of the cars......we're just following the engine.

Have a nice day, and Thank You for riding Fiat Railways!!!


Wed, 07/25/2012 - 18:47 | 2651205 TheFourthStooge-ing
TheFourthStooge-ing's picture


Have a nice day, and Thank You for riding Fiat Railways!!!

"Herro from the cockpit, this is your captain speaking. As you can see, it appears that we are going down. Now would be a good time to refrect on your rife, and pray to whatever deity you berieve in. Thank you for frying Shitty Airrines. We know you have a choice in airrines, and it rooks rike you made the wrong one."


Wed, 07/25/2012 - 17:23 | 2650905 ejgej
ejgej's picture

let's wait until october, then we'll see who will fall, and guess who?, it will happen in DC: what a better condition than an electoral year to create a panic and than be bailed out by Fed ordered by both presidential candidates anxious to take peace back to their electorate?

Wed, 07/25/2012 - 14:25 | 2650148 Jlmadyson
Jlmadyson's picture

QE doesn't happen next week there is going to be some serious gnashing of teeth heh.

Wed, 07/25/2012 - 14:32 | 2650178 NoTTD
NoTTD's picture

EJ Bitchez!  (Did I get that in first?)

Wed, 07/25/2012 - 14:33 | 2650181 markar
markar's picture

If Italy had any cajones,it would take its 2000 tons of gold and exit the Euro, pronto!

Wed, 07/25/2012 - 14:35 | 2650194 ParkAveFlasher
ParkAveFlasher's picture

Like the rest of us, they are waiting for the spot to pop.

Wed, 07/25/2012 - 14:36 | 2650202 Haager
Haager's picture

if Italy had cajones, it would be Spain. Italy has gamorrha.

Wed, 07/25/2012 - 14:34 | 2650190 NoTTD
NoTTD's picture

Itasly will probably be aklright in the long run.  After all, i got nothing but C's in college.

Wed, 07/25/2012 - 15:51 | 2650529 GMadScientist
GMadScientist's picture

Community Clown College (+)

Wed, 07/25/2012 - 14:43 | 2650223 q99x2
q99x2's picture

Someone ought to post the names of the idiots buying that junk so nobody will ever associate with them or the companies they work for.

That stuff is not junk it is toxic.


Wed, 07/25/2012 - 16:23 | 2650642 d_taco
d_taco's picture

In the end UK will be the last country with triple A.

Despite a rappid shrinking economy, unemploymentrate far above 8%, a growing budget deficit above 8%, a trade deficit and a debt of about 140% GDP.

And last but not least; an economy that depends on a fraudulent banking system.

And there are still rating bureaus who rate such country higher than Germany and the Netherlands.

Rating agencies including Egan Jones are clowns.

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