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Hungary 'Junked' By Moody's
Citing uncertainty over the country's ability to meet 'austerity' targets and its rising susceptibility to external shocks - given its heavy reliance on external investors - Moody's just downgraded Hungary to Junk Ba1 (with a negative outlook).
Moody's Statement Summary:
The key drivers for the downgrade and negative outlook are as follows:
1.) The rising uncertainty surrounding the country's ability to meet its medium-term targets for fiscal consolidation and public sector debt reduction, particularly given Hungary's increasingly constrained medium-term growth prospects.
2.) The increased susceptibility to event risk stemming from the government's high debt burden, heavy reliance on external investors and large financing needs as the country enters a period of heightened external market volatility.
Moody's believes that the combined impact of these factors will adversely impact the government's financial strength and erode its shock-absorption capacity. The rating agency's decision to maintain a negative outlook on Hungary's ratings is driven by the uncertainty surrounding the country's ability to withstand potential event risks emanating from the European sovereign debt crisis.
Moody's has also downgraded by one notch to Ba1 from Baa3 the foreign-currency debt rating of the National Bank of Hungary (NBH) given that the Republic of Hungary is legally responsible for the payments on NBH's bonds.
With its 10Y yield currently at 9%, only 190bps wider than Italy, we thought it somewhat ironic that Hungary's average 10Y yield from SEP09 to SEP11 was 7.2% - almost exactly where Italy finds itself trading currently.
Chart: Bloomberg
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Isn't Sarkozy 50% hungarian?...
Futures open.. on the lows 1156.. - http://hedge.ly/uH9qLV
Moody's is hungry so they eat Hungary.
I know this thought should be in the top topic but somehow with another country being cut to junk, it seems just as appropriate.
Are we taking bets on how many people will be trampled to death in tonights kickoff to the holiday shopping season? I guess at least 3 shoppers will be dead by morning. Is there an intrade trade on the body count this year? Last year we had a few deaths and it seems every year big box stores kill more and more of their customers with their loss leader policies and such.
"Three violent deaths in two stores marred the opening of the Christmas shopping season Friday.
In the first, a temporary Wal-Mart employee was trampled to death in a rush of thousands of early morning shoppers as he and other employees attempted to unlock the doors of a Long Island, New York, store at 5 a.m., police said.
In the second, unrelated incident, two men were shot dead in a Toys "R" Us in Palm Desert, California, after they argued in the store, police said."
http://articles.cnn.com/2008-11-28/us/black.friday.violence_1_wal-mart-worker-fleming-busiest-shopping-days?_s=PM:US
This is just one story but I do enjoy the stories of customers being trampled to death most. Perhaps the big box stores should offer their customers Sumo outfits for protection from the onslaught.
Sumo Suit Showdown
http://www.youtube.com/watch?v=m1FDSXSlpmg
Michael started the office betting pool with:
The way things have gone this year, I think we may be due for a new record. Put me down for seven.
for the most part, it seems like nothing but a big chimp out. heck most of those idiots are there to see what they can shoplift......
Nobody's Hungry on Thanksgiving eve.
A'merikans are all trippin on (2S)-2-amino-3-(1H-indol-3-yl)propanoic acid.
http://www.wikigenes.org/e/chem/e/6305.html
It makes them shop better. Hungry for Xmas cheer.
Did he say "This compound is a controlled substance
and therefore can not be bought through MolPort!"
http://www.molport.com/buy-chemicals/moleculelink/2S-2-amino-3-1H-indol-...
Oh no he didnt girlfriend!
"The anthranilate synthase-phosphoribosyl transferase complex of the tryptophan biosynthetic pathway in Salmonella typhimurium is an allosteric, heterotetrameric (TrpE2-TrpD2) enzyme whose multiple activities are negatively feedback-regulated by L-tryptophan [14]."
Oh sweet flu shots batman! Did someone drug up my Turkey?
Are you getting sleepy my little zheeple. You can tell me.
Describe how you feel about 20-30 minutes after consumption of the traditional meat product.
Try to meditate in a quiet area and observe the inner turmoil. Let us know how you feel.
Genetic engineering. Tryptophan under suspicion.
http://www.ncbi.nlm.nih.gov/pubmed/2392146
nope. its a myth...there are only traces of your amino acid trip2phan. you get sleepy because you gorge yourself on 2000+ calories so your blood sugar gets whacked out....
http://www.snopes.com/food/ingredient/turkey.asp
Let's now JUNK France and USA and purge this motherfucker. PIIGS is....well.....if Hungary got it then what is Moody's waiting for? Kickbacks?
junking will certainly be the bees knees this holiday season
The downgrades are only going to continue.
http://silverliberationarmy.blogspot.com/
no 50 % mongol
but he's 100% asshole!
if i'm correct, hitler was also hungarian!
i'd like to see all politicians hung....
The way politicians lie, I'm sure they'd tell you they are hung.
maybe america is next?
http://expose2.wordpress.com
Is financial disfunction in Europe still news?
they shouldn't rate the Govt debt, they should rate the key moving compenent: politicians
the financial solvency follows the quality of the polticos and Hungaries are crooks (like Greece, Ireland, Portugal, Spain, Latvia, Britain, er well you get it by now, the whole of Europe basically)
Moodys et al rating inanimate objects like Bonds and calling them "junk" is the wrong end of the stick... rate the politicians somewhere between Responsible and Bit of a Twat and Thieving Crook
if american pension funds bought hungarian bonds, they could maintain their 8 percent fund appreciation mandate and still have a point to go...........duh?
The 1% management fee! DUH!
So I'm losing track, which European countries are junk now? Greece, Portugal, Estonia, Belarus, Hungary, Ireland, Italy, Iceland, Moldova, Albania? Spain and Ukraine on the brink, any others? To be frank, it's just a matter of time before the entire continent is reduced to junk, and this will take the rest of the world down with it.
Looking at your list, you'd be forgiven for thinking that Europe was run by a bunch of fuckwits.
Bulgaria standing proud at Baa2!
Romania is still at Baa3, 'grats for the upgrade this summer ;)
I'm thankful I'm not European
With all of this chaos I'm seein'
When the shit hits the fan
(Which is part of the plan)
I'd be packin' my bullion and fleein'
Euro-trash.
The bankers and ratings agencies are not able to junk Russia and China. At least not until their bioweapons doomsday "Mars lunar mission" satellite moves out of Earth's orbit.
Huh? You know something the rest of us don't?
And how do we long this?
You forgot about Poland...well it's getting there
Belgium is facing a downgrade, I think (but not to junk--yet).
EXCEEELLLENTTT! I havde been short Hungarian bonds for the last 5 years.
I own a beautiful pure silver commemoration medal issued by the Hungarian national bank.
That's the only Hungarian-related thing I've ever had and I like it.
Well I liked the gulash.
Wasnt so keen on the botty sex though.....
I've still got some Forints. At the time, it was 260 Forints per $1. And Euros were par.
Now it's only 235. I guess with the USD declining 25% against the Euro and 10% against a currency backed by junk bonds in 9 years, we're all totally screwed.
Couldn't those two criteria be equally applied to the US or UK or even Australia, Canada, Japan.....?
Just sit back and wait. This will be beyond funny.
Note to self: Start stacking pop corn along your silver.
My wife has some "Hungarian Bonds' in her Trunk... if you know what I mean
Your wife? Don't you mean your mom?
My mom has Argentinian Bonds in her trunk... it's been there for a while.
The key is to withdraw before you yield, or your paying a penalty for 18 years.....
Bahaha +1
Good thing I finished my coffee before reading this
Double!
EZ junk bonds overkill, now the EUR unwind. USD will be bought like mad Asian session
"Who's Goldfinger going to make prime minister now uncle Baron?"
what effect does this have on Switzerland if any? .. lots of CHF denominated mortgage debt in Hungary isnt there?
Im thinking that peg is going to get torn apart any time soon, time to buy CHF with EUR shortly methinks
I hear it's about 60% in CHF. I still don't get it why consumers want to take on FX risk. If Goldman can't predict the exchange rate how can they?
cause over here back then the intrest rate difference was huge between HUF and CHF. ( Still is )
I called for a downgrade after S&P postponed theirs to February earlier today. Thanks Moody's. Fun times for the forint tomorow!
ES continues to selloff...black friday indeed
It's time to downgrade those stinky arm pitted fucks from France!
Belgium is next.
Here goes your "polling booth revolution" Viktor(PM)! But no worries, just keep one eye always on the economy like Matolcsy(finmin). :D Look only to the mirror if you want to find out who responsible for the shit going on in this beautiful country. You don't need secret service or counter-terrorism agency for that.
the fuck u talking about ?
what exactly was viktor suppose to do since he was elected?
I KNOW !!! he should have put a dead warrant on any socialist scum that stole the money like "feri" the ex prime minister, the jew at the national bank and the rest of them with off-shore cyprus bank accounts.
he should have hanged them in the middle of the squares like we did in '56 and let them rot for days....
BUT since he chose to fight the IMF and the "david stars" who are sad that they didnt get to get to help his only choice now is to deal with the situation, perhaps if this get bad build his own nukes pointed at brussels just in case.....but still
still D.R.E.
http://www.youtube.com/watch?v=kG_qcud1ShM&feature=related
You seem related to Hungary for me, saying cuz of the pic
And you see very well what Viktor sad to get elected but thats only the talking, same applies to "fighting the IMF" its just talking. 16% flat tax rate and ripping of people's pension doesnt look like a weapon against banks. Its against Hungary's future in favor of banks/money/jews/IMF you name it.
Proper acknowledgement is due for all ZH does but...
How did I miss this developing? Is Hungary perhaps the BLACK CHIC event? Maybe it isnt so bad. Latvia can bail them out right?
ZH has mentioned it several times
http://www.zerohedge.com/article/will-unwind-one-gdps-worth-impaired-for...
http://www.zerohedge.com/article/yield-hungarys12-month-bill-surges-575-...
nice Video how Austria sold credits for nothing to Hungaria. Have a look at it and then u know why Austria will also be junked soon!
http://www.mmnews.de/index.php/wirtschaft/8945-ungarn-ramsch
Very old news. And be polite, it's called Hungary in English.
So now its PHIIGS??
and squeeze in a B for Belgium
The SHIIP is sinking
PIG SHI ... will Turkey step up, please.
excuse me.
Journalist Webster Tarpley among the Syrians in Al-Hijaz square
http://www.youtube.com/watch?feature=player_embedded&v=8eb8lT2H9tY
Europe's rating agencies should send out equally obsolete rating news letters for such financially sound places such as Michigan, Ohio, Indiana, US Southeast swamp states (too many to list), US Southwest desert states and Oregon the gay and death cult loving freak state.
Junk, junk everywhere,
I don't know what to think,
Junk, junk everywhere,
The boat is 'bout to Sink!
this is a prime example of what I am talking about!
A complete moron just "pasting" "junk" instead of actually commenting on the topic
but hey, what can you expect from a retard in these post Herr Hitler days....
I suggest ZH opens a post concerning morons and their rights in regards to them being allowed to post on the internet for the sake of society...
WHAT happened to Zero Hedge ????
i come to this site every market day of the year for the past 2 years and the comments are getting worse and worse....
it used to be pure economics, but now its just a bunch of one liners "gold bitches" bull crap.....
I KNOW what happened.....it became popular with the "every day folks", who the most they can pull is a repeated over and over copy paste one liners.... SAD
just like its sad that the socialist scum is not hanging in the middle of the Budapest right now, rotting for stealing all the money they could get their hands on, but its same in US OF OBAMA, nothing new under sun
BTW: Hungary has one of the highest property ownership in EU per capita, the only thing is that some (dont know the %) own it in CHF, which sucks, but hey cheap forint means all Slovaks crossing border to shop shop shop and gas is cheaper in HU than in supposedly credit worthy Slovakia, NOW that country is gonna go down the drain very very soon, the only difference with Hungary, they dont have the newest highway network like Hungary does (M7 near Balaton is like formula ONE quality ready for 300km/h speed, but laws are not like Germany) and the property ownership is way smaller...
This trend started a while ago when the blog got its PM-tilt going full throttle.
Now we have 400 comments for each post, out of which 4 are worth reading (like yours in this case)
THANK YOU !
you know, when majority can only think in terms of "one liners" no wonder the world is led by someone like Obama, in fact once the "one-liners" realize the bank at the ATM has a suepr "one line" for them called "NO CASH TODAY, TOMORROW OR EVER" thats when they wake up, but hey, the world always consisted of morons mostly and the smart ones are watching from the back...its sad
Fuck off.
Part of it is ZH fault. They started posting political assclowns like Dylan Ratigan and that Kreiger douche bag, and that propobley started drawing in the Obama kids.
As to your observations about the morons, you have a unique persective sitting in Hungary(?). Your country freed itself of Obamanomics 20 odd years ago, but you still remember what that looked like.
The greatest uncertainty is the same for a country as for an individual;
1. where do they get the money to pay?
2. when do they get it?
Whether it is a family debt or a sovereign debt, revenues all across the board are plunging. I see revenues dropping in every direction and more cuts in staff, salaries, production coming.
I agree with Soros and Bill Bonner over at DR:
"the ECB has to monetize and monetize big!" [paraphrasing a tad]
try for a second think about that, try to print a few bills at your home printer and give it to your wife to do some "thanksgiving shopping"...lets see how many items she gets to purchase and how soon secret service shows up at your doors, its ABSOLUTLY same with government bills being printed with no backing, no value.....
ECB printing its way out of "crisis" means hyperinflation, means war, war means get nukes, nukes mean nuke warheads being fired....the rest you can imagine
but STILL that is exaclty what will happen
Soros is smoking bad sh*t these days. Greece will be kicked out of the EU...Germany will use Greece as the get-your-sh*t-together or your next...warning to the rest of the PIIGS. There will no all in debt buying by the ECB. The EU has to shrink, restructure or the EZ on a whole is finished...and if they do print, which they won't, oil hits 100. Then EZ will burn riots/protests/wars etc etc etc. Take some short pain now - come out stronger, or lose touch with reality and take death. That is Europe at the moment.
...so Europe has 2 choices.
Soros has a plan
EUR getting killed.
Well, since they weren't already AAA, how does this downgrade play out? Are there several funds holding Hungarian bonds that now must divest them, or possibly buy CDS in order to hold them? I can understand how this might wreak havoc in the FX markets, but is this really going to hasten the demise of Eastern Europe?
I would laugh if they were really sitting on tons of hidden cash and waiting for this very scenario to secretly buy back all of their debt at a fraction of the face value!
hungarian goulash will always be AAAAAAAAAAAAAAAAAAAA!
This just in:
* Hungary Downgrades Moodys
*Hungarys downgrade of Moodys cancles out Moodys Downgrade of Hungary
*Hungary still willing to pay for hamburger Tuesday,for hambuger today.
well...you ruined your dinner
I live here in Hungary and it is really difficult. But you have to know that people over here are assholes to. Where they can screw you over for few pennies they will. If you go to villages they kill you for $50. Credit is nowhere to be found. Salary still low compared to other european countries. Yet most Mercedes, BMW and Audi's are to be found here. How's that possible? Like I said, they rip you where ever they can. Now about Orban, he made fun of the new leader of the Hungarian MSZP when he got in the power. see this youtube link.
http://www.youtube.com/watch?v=HzJQBTbAE38
Making fun about deficit how the MSZP left it and so on. Then indeed he turned against the EU with his big mouth.
And then he turned against the banks and foreign companies who have to pay more tax in Hungary then those that are from Hungary by origin. Many people here hoped he will be the messiah.
I admit, I'm not rich. Have difficult to but if I go down, I hope they go down to. And I know it will be harder now cause of the downgrades but this is what Orban and Matolcsi deserves for his big mouth.