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Rumor Meet News: S&P To Put All 17 Euro Nations On Downgrade Watch

Tyler Durden's picture




 

Just as we noted earlier from the leak to the FT, Bloomberg is now reporting further that

S&P Said to Place All 17 Euro Nations on Rating Downgrade Watch

The AAA aspect is probably the most critical still and the differentiation between Austria and France and the rest of the AAA European sovereigns has been plain to see for a while but the major direct impact of this move will be on EFSF bonds (and the entire support structure) which managed to rally back from just over 200bps to 148bps close today.

EFSF spread to Bunds remains 35bps higher than immediately post the EU Summit.

Charts: Bloomberg

 

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Mon, 12/05/2011 - 16:30 | 1948020 Thomas Jefferson
Thomas Jefferson's picture

So it begins.

Mon, 12/05/2011 - 16:30 | 1948025 RobotTrader
RobotTrader's picture

NEM down 3%

JPM up 3%

Blythe wins again.

Mon, 12/05/2011 - 16:32 | 1948032 AndrewCostello
AndrewCostello's picture

The entire world economy is junk.  It is a paper fantasy designed to distract the feeble minded.

 

The 21st Century will be ruled by those who hold the REAL PHYSICAL ASSETS.

 

Join us:

http://www.facebook.com/pages/Gun-Owners-for-a-Gold-Standard/180803025347901

Mon, 12/05/2011 - 16:35 | 1948046 jabaykhan
jabaykhan's picture

God bless America! MFers Global

Mon, 12/05/2011 - 16:36 | 1948047 drivenZ
drivenZ's picture

shocking... "Rating Agencies: telling you everything you need to know, 6 months after the fact."  

 

Don't see how this matters one iota. because of the EFSF? Sovereigns make their own rules, which they'll change when needed. 

Mon, 12/05/2011 - 16:37 | 1948048 Hoody Who
Hoody Who's picture

One more time. 

My lifters are lifeless,

My cams are jammed,

And I have oil running out of the headlights again.

Oh my!!

Mon, 12/05/2011 - 16:37 | 1948051 junkyardjack
junkyardjack's picture

Banks haven't gotten the memo...

Mon, 12/05/2011 - 16:37 | 1948052 Bolweevil
Bolweevil's picture

S&P=Global Jihad

Mon, 12/05/2011 - 16:44 | 1948064 Johnny B Good
Johnny B Good's picture

Ok lets recap:

 

Anglo-American elites incl. media is blowing this euro-crisis beyond all proportion, to misdirect from their own financial Situation WHICH IS MUCH WORSE THAN THAT OF EURO-STATES.

 

Then Today come news that the crisis may be solved. And promptly a minion of the anglo-americans called "'S&P" which is an AMERICAN rating agency leaks a possible downgrade to WORSEN the Situation again.

 

JEEZE who saw that one coming.

 

you are right to invest in Gold or whatever, because the Euro will survive and once it comes to light that the crisis is far less severe then made up in the us and british media it will be your economies that are in the spotlight and guess what. Your Situation IS worse than it seems.

 

Mind my words, One or Two years from now you wished you had the Problems Europe has now.

Mon, 12/05/2011 - 16:53 | 1948131 Teamtc321
Teamtc321's picture

Take a look at the chart's in Mr. Bass's presentation.

http://www.zerohedge.com/news/kyle-bass-explains-new-world-order 

Mon, 12/05/2011 - 17:05 | 1948202 Peter K
Peter K's picture

I have heard it said that patriotism is the last refuge of a scoundral. But Europatriotism? It is a fricking continant for heaven sakes-)

Mon, 12/05/2011 - 17:29 | 1948290 pods
pods's picture

Well I won't agree that the EU's problems are not that bad.  But I will heartily agree that we in the states will be begging for some mild riots when austerity comes washing ashore here.

I am hoping we can keep it at Mad Max, and praying it doesn't get to The Road.

pods

Mon, 12/05/2011 - 17:58 | 1948455 Tao 4 the Show
Tao 4 the Show's picture

Yes, as usual, the situation is a bit more fine-grained than the sound bites. From a monetary point of view, the sound bites are somewhat accurate simply because the U.S. is able to print while diluting the inflationary effects worldwide due to it's reserve currency status. Europe does not have this luxury and when history (Weimar) is included, printing options are reduced. So, with the over leverage and heavy debt loads, Europe is the pig-for-a-day.

The situation becomes more complex, though, if the reserve currency privilege is questioned. If it were taken away suddenly, I'm fairly sure Europe would be in far better shape than the U.S. People live closer to the bone in Europe - less traveling, automobile commuting, energy use per capita, etc. Worker mobility is less, but that means that families are closer together and family homes are passed through the generations. Based on my own observations, I think that there is more real economy and less financial (fluff) economy in Europe as well.

So, the truth is more complex than it may seem. Europe has made bad decisions and the low-grade bank clerks (as Farage calls them) who are trying to pull a coup using coercion and sheer boredom as weapons are a problem. Both sides of the Atlantic are in trouble and loaded with structural problems. Will be interesting to watch.

Mon, 12/05/2011 - 16:42 | 1948070 virgilcaine
virgilcaine's picture

Thanks for the 1k point Dow rally from TURKEY day.. now I shall put this market down.  No sparing this Turkey rally.

Mon, 12/05/2011 - 16:41 | 1948072 Scalaris
Scalaris's picture

How could this happen? - I thought everything was fixed this week after Fed's swapfest.

MSM - Hope needed STAT.

Mon, 12/05/2011 - 16:46 | 1948085 distopiandreamboy
distopiandreamboy's picture

I was getting worried there for a sec that the VIX might actually go below 25!

Mon, 12/05/2011 - 16:59 | 1948175 chump666
chump666's picture

momo meltup...

Mon, 12/05/2011 - 17:23 | 1948264 forrestdweller
forrestdweller's picture

terrorism i would call it.

Mon, 12/05/2011 - 17:27 | 1948283 Ag1761
Ag1761's picture

I already have this coming downgrade priced into my stack.

 

BTFD

Mon, 12/05/2011 - 17:49 | 1948406 youngman
youngman's picture

So let me think this thru....the interest rates on the EU bonds are dropping because of another so called fix....but their economies are tanking and therefroe they are losing their AAA statis so the interest rates should be rising on their trash bonds that they can´t pay back unless they get more trash bonds sold...and the EURO was stronger today on this news.....I was an alcholic..now I am changing to pine sol or something stronger...97 oct gasoline....man we live in wierd times

Mon, 12/05/2011 - 19:48 | 1948842 uranian
uranian's picture

this strikes me as ever more desperate attempts to divert attention from elsewhere. meaning the USD, i imagine.

Mon, 12/05/2011 - 23:36 | 1949609 Tom Green Swedish
Tom Green Swedish's picture

I predict the Euro tanking to at least 1.10 to the dollarb based on my "charts".  The Germans will not be pleased with this and will promptly leave.  Although I use RSI and MACD I have found that they indicate oversold and overbought they are also excellent trend signals, and when they retreat from the middle guage and start trending lower and staying lower they stay lower.  Everybody jumps on the bandwagon and joins the trend and follows the money.  The EURO RSI can't break 50 for over a short period of time now. Bad signal.

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