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No more Vive a la bullshitting?
Yawn! S&P, you hear me? Y*A*W*N !
Classic overreach by S&P after having been asleep at the switch for years.
And after being asleep for years they place the LONG TERM ratings of over indebted countries on CreditWatch, but with the condition that a short term policy response can still change S&P's opinion (I cannot think of any politically viable apropriate policy response that may change my view on Europe's debt) Anyway the market knows best. Just as a sample:
France AAA 5 yr CDS 179
Brasil BBB+ 5yr CDS 147
The funney thing is, if they do Eurobonds they WILL BE downgraded and if they DO NOT Eurobonds they will be downgraded as well?! I opt for the second outcome... ;-)
Shorter S&P: Sorry chumps but people are watching now. Get your act together or we throw you under the bus as an example to the others.
Europe-wide fiscal integration and treaty changes are not going to solve the problems S&P points out here. The EuroConTricks will no longer delay the inevitable downgrade after Dec 8-9. Ugly weekend to remain long coming up.
ECB should hold rates steady and then rise from the swath of downgrades with the hum of Brent crude-oiled printing presses.
La France est dans la merde.
I will believe there is a global recovery in place when EU member states and the US and Japan and China etc. collectively announce the steady and sustainable creation of millions of good paying new jobs whilst collecting healthy tax revenue streams whilst managing deficit spending in a prudent fashion. Until then, this talk of "recovery" based upon Merkel + Sarkozy meetings is pure BS.
S&P: "We certainly mean business about this MF Global co-mingling affair. Yes we have a big stick and we are going to use it. Sometime. We ... will ... act. When we act. Shortly. After the summit. Did we say the 8th and 9th? Shortly. Next time it happens we will be there to enforce the rules, next time you can mark our words. Mark them, I say."
S&P: "Mommy? Can I have a popsicle with my hookers and blow?"
Tomorrows action should be fun to watch in Europe. Almost as fun as it is to watch the manipulations in our own markets.
Can you imagine the string of profanities coming from Sarkozy's mouth right now. "Deux notches!" @@$*^%$?*#**&%%##.
Belligerent Sarkozy is too busy invading Libya and fighting for the Next Nobel Peace Prize to be bothered with trivial things like the French people.
SP500 monthly chart remains bearish and USDX weekly remains bullish, so it’s only a matter of time until the market makes its move.
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