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Friday The 13th Is Here: Eurozone Sources Say Several Countries May Face Imminent Downgrade By S&P

Tyler Durden's picture


The one we've all been waiting for:

  • Eurozone Sources Say Several Countries May Face Imminent Downgrade By S&P -Dow Jones
  • Eurozone source says Germany will not be downgraded - RTRS... So France will be?
  • S&P declines to comment

Ladies and gents - happy Friday the 13th - the French downgrade is nigh. The only question - one or two notches. EURUSD promptly sliding on the news.


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Fri, 01/13/2012 - 10:04 | 2061132 slaughterer
slaughterer's picture

<== France one notch

<== France two notches



Fri, 01/13/2012 - 10:06 | 2061152 mayhem_korner
mayhem_korner's picture



The only satisfaction I'll get out of S&P's ratings is when actual defaults prove the ratings worthless.

Fri, 01/13/2012 - 10:12 | 2061166 GeneMarchbanks
GeneMarchbanks's picture

Ah, touche. But we have an ISDA to make sure 'defaults' do not happen.

Greenlight. Get in there and buy some stocks.

Fri, 01/13/2012 - 10:17 | 2061189 WonderDawg
WonderDawg's picture

Been hearing these rumors for a while now. I'll believe it when I see it.

Fri, 01/13/2012 - 10:22 | 2061202 clones2
clones2's picture

I am shocked that insider information like this could possibly be leaked... SHOCKED!

Fri, 01/13/2012 - 10:47 | 2061230 hedgeless_horseman
hedgeless_horseman's picture



Oceania (The Petrol Dollar) has always been at war with Eurasia (the Euro).

Why do you think we are fucking around with Iran?  To push up Brent versus a weak Euro.  

After we are done, no oil exporter will ever consider anything other than the dollar again, and Timmy will be free to debase the currency.  No strong petrol dollar alternative left behind.

No more racing to the bottom...the new game will be synchronized diving.

A few more years of happy motoring for Americans on their mega freeways, and bicycles for Europeans in their little villages.

Fri, 01/13/2012 - 10:48 | 2061297 JPM Hater001
JPM Hater001's picture

Problem is the bi-lateral swaps agreements are accelerating.  We thought the Venzuala/China swap agreement last year was symtomatic of the problem...I preferred to see it as emblematic.

Fri, 01/13/2012 - 11:11 | 2061388 Cast Iron Skillet
Cast Iron Skillet's picture

... bicycles in their little villages? ... lol. But e-bikes are pretty hot over here right now. They go pretty zippy.

Fri, 01/13/2012 - 14:47 | 2062522 richard in norway
richard in norway's picture

at last someone calling it as it is

Fri, 01/13/2012 - 10:22 | 2061204 French Frog
French Frog's picture

Good point.

How about another doctored-well-above-expectaion University of Michigan Consumer Sentiment number in 35 mins to bring it all back up and yet again force some short covering?

Fri, 01/13/2012 - 10:40 | 2061266 Non Passaran
Non Passaran's picture

> But we have an ISDA to make sure 'defaults' do not happen.

Close Default Encounters of the Third Kind

Fri, 01/13/2012 - 10:10 | 2061172 Vaiman
Vaiman's picture

I haven't seen this news on bloomberg or reuters yet!  Go figure!

I did see this one though.


Italy bond auction fails to match Spanish success


Fri, 01/13/2012 - 10:19 | 2061194 The Limerick King
The Limerick King's picture



I'm willing to bet some old scotch

That France will be lowered a notch

They need a new shock

To restart QE talk

And give us a kick in the crotch

Fri, 01/13/2012 - 10:22 | 2061203 mayhem_korner
mayhem_korner's picture

+1947 Macallan

Fri, 01/13/2012 - 10:38 | 2061258 The Limerick King
The Limerick King's picture

You're on Mayhem.....if I lose I'll deliver the bottle at ZeroHedge-a-palooza (just before they round us up).

Fri, 01/13/2012 - 11:16 | 2061404 mayhem_korner
mayhem_korner's picture wasn't actually betting, but rather invoking my privilege to indicate something greater than a +1 green arrow.

That said, I will honor your interpretation.  Should we find one another in the rubble of what's to come, I will hold for you my one remaining bottle of Macallan.  :)

Limerick on, friend.

Fri, 01/13/2012 - 11:40 | 2061530 The Limerick King
The Limerick King's picture

I acknowledge my folly and your more than honorable offer. In that case Mayhem, we shall drink it together.....and once drunk, reminisce on our Zero Hedge brethren - both esteemed and reviled.  Cheers!

Fri, 01/13/2012 - 10:48 | 2061302 T-roll
T-roll's picture

I have a strong feeling that the downgrades will be announced today after market close.  It'll be the best time to do it due to the markets being closed on Monday.

Fri, 01/13/2012 - 13:34 | 2062187 William Murderface
William Murderface's picture

MLK rally!  Machines only allowed to be on if you're buying an uptick.  Prezzy says so.

Fri, 01/13/2012 - 10:01 | 2061133 Mr. Fix
Mr. Fix's picture

Just do it all ready!

Fri, 01/13/2012 - 10:12 | 2061176 anonum
anonum's picture

EE using rating downgrades force EURUSD lower + USD index higher before announcing QE3?

Fri, 01/13/2012 - 10:48 | 2061295 nolla
nolla's picture

Nice Jyrki-boy avatar

Fri, 01/13/2012 - 11:18 | 2061412 anonum
anonum's picture

He's the Big Spender of our miniscule country, an unintellectual boy-politician exercising a reckless tax money spending spree.

Fri, 01/13/2012 - 10:17 | 2061190 Hansel
Hansel's picture

Relax, this news won't come out until all markets are closed for the weekend...

Fri, 01/13/2012 - 10:01 | 2061135 Mongo
Mongo's picture

22.00 CET Bitchez!

Fri, 01/13/2012 - 10:01 | 2061136 Jlmadyson
Jlmadyson's picture

As was foretold it all comes back around.


Timmy G on at 4:30 for spin session.

Fri, 01/13/2012 - 10:01 | 2061137 Irish66
Irish66's picture

There are no shorts in the market!

Fri, 01/13/2012 - 10:02 | 2061141 slaughterer
slaughterer's picture

A couple of us ZHers laid on shorts EOD yesterday.

Fri, 01/13/2012 - 10:14 | 2061180 Irish66
Irish66's picture

and congress

Fri, 01/13/2012 - 10:21 | 2061200 Schmuck Raker
Schmuck Raker's picture

Those idiots went long as soon as they heard the rumor.

Fri, 01/13/2012 - 10:26 | 2061220 Ex-Pat
Ex-Pat's picture

And every few days before.

Fri, 01/13/2012 - 10:02 | 2061139 sudzee
sudzee's picture

With debt ceiling being breached again, when does the US get its downgrade?

Fri, 01/13/2012 - 10:08 | 2061159 LULZBank
LULZBank's picture

Soon, USAAA will be downgraded to USAaaaaaahh!

Fri, 01/13/2012 - 10:15 | 2061184 LeBalance
LeBalance's picture

nope all the way to Sheep!  US-Baaaaaa!  /lol/

Fri, 01/13/2012 - 10:02 | 2061140 scatterbrains
scatterbrains's picture

oh boy and on Friday the 13th no less?

Fri, 01/13/2012 - 10:02 | 2061142 kralizec
kralizec's picture

Eurozone Sources Say Several Countries May Face Imminent Downgrade By S&P

Promises, promises!!!

Fri, 01/13/2012 - 10:03 | 2061144 GeneMarchbanks
GeneMarchbanks's picture

Always on Friday. Let me guess: Slovenia, Hungary, Portugal.

Fri, 01/13/2012 - 10:09 | 2061161 Schmuck Raker
Schmuck Raker's picture

Portugal's too important...

Malta maybe, or The Vatican.

Fri, 01/13/2012 - 10:03 | 2061147 jesus_quintana
jesus_quintana's picture

'bout fuckin time

Fri, 01/13/2012 - 10:03 | 2061148 NoControl
NoControl's picture

More like S&P declines as comment

Fri, 01/13/2012 - 10:05 | 2061150 fonzannoon
fonzannoon's picture

I better buy treasuries fast!

Fri, 01/13/2012 - 10:05 | 2061151 kito
kito's picture

france will NOT get downgraded. NO chance of it. 

Fri, 01/13/2012 - 10:07 | 2061153 slaughterer
slaughterer's picture


Fri, 01/13/2012 - 10:08 | 2061155 fonzannoon
fonzannoon's picture

Kito I hate every single post you put on here but agree with them completely. It's really annoying.

Fri, 01/13/2012 - 15:40 | 2062755 kito
kito's picture

@FONZANNOON --with friends like you, who needs enemies?

Fri, 01/13/2012 - 10:08 | 2061156 kurzdump
kurzdump's picture

What's your bet on austria?

Fri, 01/13/2012 - 10:27 | 2061224 Lucius Corneliu...
Lucius Cornelius Sulla's picture

Same as France.  Italy and Spain are in very bad shape.

Fri, 01/13/2012 - 11:00 | 2061342 agent default
agent default's picture

France should have been downgraded last year.  If there was any integrity in this rating system we should  be talking about the downgrade of Germany right now, not France.

Fri, 01/13/2012 - 10:08 | 2061158 JPM Hater001
JPM Hater001's picture

Still seems like a bitch bad day to be a Templar.

Fri, 01/13/2012 - 10:39 | 2061260 snowbaall
snowbaall's picture

The big question is when do these countries start dropping out.

The piigs are screwed.

Thank God we still have pussy and beer.

When they decide to stop using the Euro is when the whole thing collapses.

But when will that happen?

Presidents will be deposed.  And technocrats will be called in.

Fri, 01/13/2012 - 11:01 | 2061350 agent default
agent default's picture

And then technocrats will also be deposed.  And guillotines erected.

Fri, 01/13/2012 - 10:52 | 2061300 trentusa
trentusa's picture

Tupac & Jesus both got killed on Fri the 13th.

Fri, 01/13/2012 - 10:09 | 2061160 Bernank Sheeple
Bernank Sheeple's picture

New boss at S & P in 5, 4, 3,

Fri, 01/13/2012 - 10:17 | 2061186 eigenvalue
eigenvalue's picture

I think the US loves to see Europe in a mess. After all, this may boost the "Safety Haven Demand" of treasuries..

Fri, 01/13/2012 - 11:14 | 2061246 hedgeless_horseman
hedgeless_horseman's picture



Timmy will be considered an early hero of the great resource war.

Fri, 01/13/2012 - 10:48 | 2061296 fuu
fuu's picture

More office raids incoming.

Fri, 01/13/2012 - 10:09 | 2061164 eigenvalue
eigenvalue's picture

How about a 10 notch downgrade for France?:)

Fri, 01/13/2012 - 10:21 | 2061201 wandstrasse
wandstrasse's picture

notches, bitchez!

Fri, 01/13/2012 - 10:09 | 2061167 somethingelse
somethingelse's picture

Nacho Friday!

Fri, 01/13/2012 - 10:10 | 2061170 John Law Lives
John Law Lives's picture

As a side note, I see the trade deficit for November, 2011 for the US was $47.8 Billion.

Gee, perhaps the elites could explain again why exporting our wealth every single month is such a good deal for the US...

100% FUBAR.

Fri, 01/13/2012 - 11:42 | 2061549 PianoRacer
PianoRacer's picture

Are you serious? Exporting our wealth? We are exporting cotton/linen rectangles and electrons, NOT wealth. What the other countries are sending us in return, THAT is wealth.

Its a GREAT deal for the US until the day when the other counties decide they don't much like our rectangles any more, and we look around and realize that we have NO capacity to produce anything besides petro-food. Mmmmmm...

That's when our bigger-than-the-rest-of-the-world-combined military/industrial force comes in handy.

"When you play the game of empire, you win or you die." 

Fri, 01/13/2012 - 13:46 | 2062204 John Law Lives
John Law Lives's picture

"Are you serious? Exporting our wealth?"

I never said the US Dollar was "wealth".  Money is a medium of exchange between labor and goods/services.  America continues to export industries and the jobs that go with them.  That has not been a fair (or wise) exchange for cheaper goods (imo).


"Its a GREAT deal for the US until the day when the other counties decide they don't much like our rectangles any more, and we look around and realize that we have NO capacity to produce anything besides petro-food. Mmmmmm..."

Sort of like it would be a great deal for a sick patient never to take any medicine so they can save on the cost of medicine... until they die.  Mmmmmm...



Fri, 01/13/2012 - 14:04 | 2062325 PianoRacer
PianoRacer's picture

The very definition of a "trade deficit" is that we import more goods/services than we export. The difference is made up in dollars, so when you say we're exporting wealth in the context of a trade defecit, what else are you referring to other than dollars?

I 100% agree with you that it has not been a wise exchange in the long term. In the short term it has allowed us to live much better than the rest of the world for far, faaaaaaar less effort (just press PRINT!)

When the mean reversion occurs, the US will be in for a big wake-up call IMO. That's all I'm saying. 

Sat, 01/14/2012 - 00:15 | 2062477 John Law Lives
John Law Lives's picture

" when you say we're exporting wealth in the context of a trade defecit, what else are you referring to other than dollars?"

I do not contend that the US Dollar in and of itself represents wealth.  Wealth, in my opinion, involves ownership of goods produced by labor.  The US exported the capacity to create such wealth AND it exported wealth itself (this includes machines and inventories).  It moved from here to there.  One result of moving that capacity and capital abroad is we now import many of those goods that were once produced here.

Fri, 01/13/2012 - 10:10 | 2061171 LULZBank
LULZBank's picture

Eurozone Sources Say Several Countries May Face Imminent Downgrade By S&P

Same Sources that bring you other bullshit.

Fri, 01/13/2012 - 10:12 | 2061173 semperfi
semperfi's picture

Does anyone thinks this matters squat?  With the central planner money manufacturers manufacturing as much eMoney as needed to keep The Syndicate on top none of this matters.    Here's one for you:  Since The Fed "manufactures" money, why isn't this product included in the GDP calculation?   That would make our GDP look REALLY good !!!!

Fri, 01/13/2012 - 10:12 | 2061175 lizzy36
lizzy36's picture

FrAAAnce we hardly knew you.

Fri, 01/13/2012 - 10:12 | 2061177 Jayda1850
Jayda1850's picture

Too bad no announcement will ever be made until after the close, monday should be fun though.

Fri, 01/13/2012 - 10:21 | 2061198 lizzy36
lizzy36's picture

US is closed on Monday.

MLK day.

Fri, 01/13/2012 - 10:25 | 2061212 Jayda1850
Jayda1850's picture

Damn hate when my favorite soap opera has short weeks.

Fri, 01/13/2012 - 21:02 | 2063773 StychoKiller
StychoKiller's picture

"As the Wurld Churns"

"All My Ponzis"

My favorite:  "Genital Hospital"

Fri, 01/13/2012 - 10:12 | 2061178 Lucius Corneliu...
Lucius Cornelius Sulla's picture

Old news.  The CDS market downgraded France last summer.  As usual, the ratings agencis are hopelessly behind and totally worthless.


Fri, 01/13/2012 - 10:17 | 2061188 Comay Mierda
Comay Mierda's picture

looks like we may have a double top on the charts.  the downward trend ZHers have been salivating for may start materializing.

Fri, 01/13/2012 - 10:18 | 2061191 HyperLazy
HyperLazy's picture

/ES ran out of viagra... oops its starting to lift again...

Fri, 01/13/2012 - 10:19 | 2061193 Northeaster
Northeaster's picture

Ok financial guru's (which I'm not), please answer this:

If all these banks are broke, especially in Europe and Japan, how can a company do this?

Two notes, one short, one long, then we get this:

A credit line of $10 billion, again, from some stated, would-be broke banks.

So it seems to me in laymen terms, for a company this size, it's a no brainer to keep buying Treasuries, guessing the terms of your credit are better than buying the Treasuries (ratio of % of credit versus ROI)? This of course, in light of global banks that supposedly are broke? Or is it the consensus that money printing, at all Central Banks, support this indefinitely? If your economy isn't producing enough to back the Treasury notes, how the hell can you pay them at maturity?

Hopefully there are some industry pro's that can explain this simply, thanks in advance.


Fri, 01/13/2012 - 11:06 | 2061366 Lucius Corneliu...
Lucius Cornelius Sulla's picture

I'm not a guru either, but here's my take on it.  

As long as the credit markets perceive that governments will continue to bail them out, the money will flow.  IMHO, that is why the short term spreads on CDS paper (< 1yr) are much lower than long-term spreads (5+ yrs).  It is also why governments are rolling their debt over using short-term paper.  The market is saying that it is likely bailouts will coninue to succeed for the next year or two but not so sure after that...

Fri, 01/13/2012 - 10:18 | 2061195 The Fonz...befo...
The Fonz...before shark jump's picture

Let them eat cake

Fri, 01/13/2012 - 10:24 | 2061208 Elwood P Suggins
Elwood P Suggins's picture

Meanwhile in the really important news of the day DSK says he had no way of knowing that the women he was screwing were prostitutes since they were all naked at the time.

Fri, 01/13/2012 - 21:04 | 2063777 StychoKiller
StychoKiller's picture

"They never flashed their badge(s) [Just everything else!]" :>D

Fri, 01/13/2012 - 10:24 | 2061209 roy10
roy10's picture

When all is said and done we may actually go up today. Bad news doesn't matter to this market any more.

Fri, 01/13/2012 - 10:25 | 2061217 Central Wanker
Central Wanker's picture

Bad news = more (printed) money!

Good news = more (earned) money!

Fri, 01/13/2012 - 10:42 | 2061272 The Reich
The Reich's picture

et cetera

and so forth

and so on

ad infinitum


--> banksters dream book

Fri, 01/13/2012 - 10:48 | 2061299 roy10
roy10's picture

Pretty much. All news is good news in this market. We should probably be green by 12pm.

Fri, 01/13/2012 - 10:29 | 2061237 LookingWithAmazement
LookingWithAmazement's picture

May Face Imminent Downgrade -- no news.

Fri, 01/13/2012 - 10:38 | 2061259 The Reich
The Reich's picture

You get what you deserve, bitchez

Fri, 01/13/2012 - 10:49 | 2061303 roy10
roy10's picture

They don't care. Draghi is printing.

Fri, 01/13/2012 - 10:55 | 2061325 urmomgoes2college
urmomgoes2college's picture

EU not playing ball pressuring Iran, huh?...ok, let's see how they like some S&P downgrades

Fri, 01/13/2012 - 11:07 | 2061367 Odin
Odin's picture

Just get it over with and downgrade Planet Earth already....Seriousssly

Fri, 01/13/2012 - 11:12 | 2061390 KickIce
KickIce's picture

It's like a damned yo-yo, one day it's all hopey-changey the next it's downgrade imminent

Fri, 01/13/2012 - 11:19 | 2061419 Jlmadyson
Jlmadyson's picture

FBN: France treasury no comment on Downgrade.


Fri, 01/13/2012 - 11:25 | 2061438 Auburn
Auburn's picture

if it's on tv, it must be true <s>  Reuters:

Breaking News: France TV channels say France rating downgraded by S&P, citing government source
Fri, 01/13/2012 - 11:45 | 2061572 Cone of Uncertainty
Cone of Uncertainty's picture

Great, so what you're telling me is that S&P is still behind the curve?

Fri, 01/13/2012 - 12:07 | 2061698 Instant Wealth
Instant Wealth's picture

German radio news - downgrades immanent for

France + Italy + Spain + Portugal

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