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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 | Link to Comment slaughterer
slaughterer's picture

<== France one notch

<== France two notches

 

FINALLY.  SATISFACTION.

Fri, 01/13/2012 - 10:06 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment clones2
clones2's picture

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

Fri, 01/13/2012 - 10:47 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment richard in norway
richard in norway's picture

at last someone calling it as it is

Fri, 01/13/2012 - 10:22 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment mayhem_korner
mayhem_korner's picture

+1947 Macallan

Fri, 01/13/2012 - 10:38 | Link to Comment 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 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

ah..er...I 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment Mr. Fix
Mr. Fix's picture

Just do it all ready!

Fri, 01/13/2012 - 10:12 | Link to Comment anonum
anonum's picture

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

Fri, 01/13/2012 - 10:48 | Link to Comment nolla
nolla's picture

Nice Jyrki-boy avatar

Fri, 01/13/2012 - 11:18 | Link to Comment 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 | Link to Comment 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 | Link to Comment Mongo
Mongo's picture

22.00 CET Bitchez!

Fri, 01/13/2012 - 10:01 | Link to Comment 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 | Link to Comment Irish66
Irish66's picture

There are no shorts in the market!

Fri, 01/13/2012 - 10:02 | Link to Comment slaughterer
slaughterer's picture

A couple of us ZHers laid on shorts EOD yesterday.

Fri, 01/13/2012 - 10:14 | Link to Comment Irish66
Irish66's picture

and congress

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

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

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

And every few days before.

Fri, 01/13/2012 - 10:02 | Link to Comment sudzee
sudzee's picture

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

Fri, 01/13/2012 - 10:08 | Link to Comment LULZBank
LULZBank's picture

Soon, USAAA will be downgraded to USAaaaaaahh!

Fri, 01/13/2012 - 10:15 | Link to Comment LeBalance
LeBalance's picture

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

Fri, 01/13/2012 - 10:02 | Link to Comment scatterbrains
scatterbrains's picture

oh boy and on Friday the 13th no less?

Fri, 01/13/2012 - 10:02 | Link to Comment kralizec
kralizec's picture

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

Promises, promises!!!

Fri, 01/13/2012 - 10:03 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

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

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

Portugal's too important...

Malta maybe, or The Vatican.

Fri, 01/13/2012 - 10:03 | Link to Comment jesus_quintana
jesus_quintana's picture

'bout fuckin time

Fri, 01/13/2012 - 10:03 | Link to Comment NoControl
NoControl's picture

More like S&P declines as comment

Fri, 01/13/2012 - 10:05 | Link to Comment fonzannoon
fonzannoon's picture

I better buy treasuries fast!

Fri, 01/13/2012 - 10:05 | Link to Comment kito
kito's picture

france will NOT get downgraded. NO chance of it. 

Fri, 01/13/2012 - 10:07 | Link to Comment slaughterer
slaughterer's picture

chuckle

Fri, 01/13/2012 - 10:08 | Link to Comment 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 | Link to Comment kito
kito's picture

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

Fri, 01/13/2012 - 10:08 | Link to Comment kurzdump
kurzdump's picture

What's your bet on austria?

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

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

 

http://workforall.net/CDS-Credit-default-Swaps.html

Fri, 01/13/2012 - 11:00 | Link to Comment 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 | Link to Comment JPM Hater001
JPM Hater001's picture

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

Fri, 01/13/2012 - 10:39 | Link to Comment 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 | Link to Comment agent default
agent default's picture

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

Fri, 01/13/2012 - 10:52 | Link to Comment trentusa
trentusa's picture

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

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

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

Fri, 01/13/2012 - 10:17 | Link to Comment 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 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

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

Fri, 01/13/2012 - 10:48 | Link to Comment fuu
fuu's picture

More office raids incoming.

Fri, 01/13/2012 - 10:09 | Link to Comment eigenvalue
eigenvalue's picture

How about a 10 notch downgrade for France?:)

Fri, 01/13/2012 - 10:21 | Link to Comment wandstrasse
wandstrasse's picture

notches, bitchez!

Fri, 01/13/2012 - 10:09 | Link to Comment somethingelse
somethingelse's picture

Nacho Friday!

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

"...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 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment lizzy36
lizzy36's picture

FrAAAnce we hardly knew you.

Fri, 01/13/2012 - 10:12 | Link to Comment 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 | Link to Comment lizzy36
lizzy36's picture

US is closed on Monday.

MLK day.

Fri, 01/13/2012 - 10:25 | Link to Comment Jayda1850
Jayda1850's picture

Damn hate when my favorite soap opera has short weeks.

Fri, 01/13/2012 - 21:02 | Link to Comment StychoKiller
StychoKiller's picture

"As the Wurld Churns"

"All My Ponzis"

My favorite:  "Genital Hospital"

Fri, 01/13/2012 - 10:12 | Link to Comment 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.

 

http://www.bloomberg.com/news/2011-12-15/france-cds-rate-exceeds-indones...

 

Fri, 01/13/2012 - 10:17 | Link to Comment 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 | Link to Comment HyperLazy
HyperLazy's picture

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

Fri, 01/13/2012 - 10:19 | Link to Comment 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?

http://www.sec.gov/Archives/edgar/data/51143/000104746911008827/a2206059...

http://www.sec.gov/Archives/edgar/data/51143/000110465911058766/a11-2849...

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

http://www.sec.gov/Archives/edgar/data/51143/000110465911063773/a11-2971...

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 | Link to Comment 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 | Link to Comment The Fonz...befo...
The Fonz...before shark jump's picture

Let them eat cake

Fri, 01/13/2012 - 10:24 | Link to Comment 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 | Link to Comment StychoKiller
StychoKiller's picture

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

Fri, 01/13/2012 - 10:24 | Link to Comment 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 | Link to Comment Central Wanker
Central Wanker's picture

Bad news = more (printed) money!

Good news = more (earned) money!

Fri, 01/13/2012 - 10:42 | Link to Comment 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 | Link to Comment 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 | Link to Comment LookingWithAmazement
LookingWithAmazement's picture

May Face Imminent Downgrade -- no news.

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

You get what you deserve, bitchez

Fri, 01/13/2012 - 10:49 | Link to Comment roy10
roy10's picture

They don't care. Draghi is printing.

Fri, 01/13/2012 - 10:55 | Link to Comment 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 | Link to Comment Odin
Odin's picture

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

Fri, 01/13/2012 - 11:12 | Link to Comment 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 | Link to Comment Jlmadyson
Jlmadyson's picture

FBN: France treasury no comment on Downgrade.

Done.

Fri, 01/13/2012 - 11:25 | Link to Comment 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 | Link to Comment 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 | Link to Comment Instant Wealth
Instant Wealth's picture

German radio news - downgrades immanent for

France + Italy + Spain + Portugal

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