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EUR Tumbles: S&P About To Put Europe's AAA Club (Including Germany, France And Austria) On "Creditwatch Negative"
Here it comes. From the FT: "Standard and Poor’s has warned Germany and the five other triple A members of the eurozone that they risk having their top-notch ratings downgraded as a result of deepening economic and political turmoil in the single currency bloc. The US ratings agency is poised to announce later on Monday that it is putting Germany, France, the Netherlands, Austria, Finland, and Luxembourg on “creditwatch negative”, meaning there is a one-in-two chance of a downgrade within 90 days. It warned all six governments that their ratings could be lowered to AA+ if the creditwatch review failed to convince its experts. Markets have been braced for a potential downgrade of France but few expected Germany’s top rating to be called into question. With regard to Germany, S&P said it was worried about “the potential impact (...) of what we view as deepening political, financial, and monetary problems with the European economic and monetary union.” Standard and Poor’s has warned Germany and the five other triple A members of the eurozone that they risk having their top-notch ratings downgraded as a result of deepening economic and political turmoil in the single currency bloc." How this critical news was leaked, we have no idea. However, what is important is that now may be a good time to panic, unless Allianz has another CDO Quadratic plan up its sleeve...
The result: the EURUSD promptly forgets the bullshit it was being fed all morning by the Eurocrats.
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*Waits for cries out of Europe to criminalize credit rating agencies*
In other news...
DRAIN THE SWAMP
I was reading about this in "Who Gives A Fuck Magazine"!
someone gives a fuck - http://hedge.ly/twn7Lr
so good news rumors are now only lasting 8 hours..... NICE.
EU as a whole is financially bankrupt (but still a beautiful place) ...
They know it.
The Vultures know it.
Germany runs for the exits next?
AND Food stamps for the rest???
There really shouldn't be any reason for concern, right?
I mean, like, the banks all pass those critical "stress tests" with flying colors, don't they?
I feel a disturbance in the force.
Better grab a bucket of popcorn, things are going to get very interesting.
-John
http://johnu78.blogspot.com/2011/11/how-to-get-started-in-amateur-radio.html
Oh no, not Finland (South Park nuke joke)
http://www.southparkstudios.com/clips/224689/we-gotta-get-rid-of-finland
S&P is just angry that they won't buy their "YOU HAVE TO PRINT EUROBONDS"-theory. Screw'em Angie, if the Irish can do it, so can Italy and France! A l'attaque, zum Angrif Merkozy!
Don't be surprised if they're recording those segments in Indianapolis pretty soon.
TPTB need to speed up the EURO crisis, because the US needs to print and needs someone to blame for it.
Down goes EU, but soon to follow all others will too.
Printing has merely been delayed!
BTFD on metal
IT'S ALL BS TO CONTROL THE PRICE OF COMMODITIES ahead of money printing. If they were going to let it fail they would have last week. They are also trying to scare Europe into accepting Germany's demands. These crooks will keep the money printing going into hyperinflation. Why do they care how much the price of gold goes too? All they need to do is print fiat to obtain it. What they care about is the perception of gold's value. When people stop accepting fiat for gold then it all comes down. Untill then keep stacking.
BTFD - The rest is noise!!!!! Is there any doubt we are headed for further trouble in the middle east? Have you ever heard of a military assualt after a currency/credit collapse? The printing will not and has not stopped. How else will they fund their military action? Look at the money supply. Even when the Fed. claimed QE2 ended in June the M2 as never stopped it's infinity expansion.
Stay the course. Buy gold, silver, oil. All else is BS. Do not engage the enemy head on when your guns are smaller. You snipe from the fringe.
There is some force out there preventing them from printing...if they could have they would have by now.
That would be Weimar.
What do you mean? They have not stopped. They have just stopped announcing it. Look at M2!! This tells the real story.
I have to agree. Depending on how history is written in the future, we may never know how it was done; but, the the shadow banking system (which is likely underestimated) is a black hole that must be fed. Stop feeding it, and the collapse occurs overnight. All that is needed to get the "feeling" of deflation to assert itself now is just ease up on the throttle and slow down a little. Sort of a monetary "theory of relativity" thing here. It is all about perspective. Therefore, to the man on the street (at margin) it feels like "biflation."
Pun, irony, or both?
Nothing intended... so I can't take genuine credit for it. But, it did seem to work out. Nice catch.
Yes, stay the course. The largest wealth transfer in history will occur following the revaluation of all things of physical value. This includes many commodities but also all that silver and gold that the central banks are accumulating.
First, there must be pain. After all, we're still feeling the wealth effect, right? (sarc)
Seriously, TPTB have two bad options: (1) more spending to kick the can, (2) unleash the inevitable inflation/deflation monster. They really don't want their parade to stop, so they WILL print -- all of them in unison, as a global coorinated fleecing, er I mean rescue. BUT, they need to play the hero with a last-minute rescue, so they have to let some cracks appear, then come in with the super glue that will tie all global debt together and hang it around our necks. Bitchez.
A little JC Mellencamp comes to mind: http://www.youtube.com/watch?v=_uCm1N-vSHI
Release the Kracken monsters of inflation/deflation: http://youtu.be/gb2zIR2rvRQ
Mutually assured economic destruction. And the ultimate blame will be pinned on the people themselves. The perfect con. Dipshit politicians playing thier roles perfectly. Of course, if anything starts to unravel - just push the panic button labeled "war."
exactly, wake me up when the JPM and the fed won't exist then I will have a slight hope that we all can give a !@#$%
Equities are about to crash.
There is the first leg down. Another one coming, and it will be huge. We are looking at a flash crash, ladies and gentlemen, put on your hard hats!
spx under 1200 any day now
SPX and NASDAQ are next now that the Dow has been sold. Things are going to catch fire here on out until 1170.
Then the PWG will have to leverage up and appease China by leasing some gold to them.
I am assuming today's gold lease was not to China, and China came in and sold off US positions.
The PWG is getting run down by Chicom today, folks. They followed the gold price down. The PWG trade is the easiest ever.
First, equities get elevated overnight (like Tyler showed last night).
Next gold gets sold off in the morning, freeing up liquidity for Central Banks.
And that is it. Then China and whoever else (me) come in and sell the shit out of equities.
Check back tommorrow for free beer tomorrow.
Second leg down rounding up. Next up third and final leg down, a bottom, and a small dead cat bounce to finish even on the day.
Look for intense selling tomorrow.
Dow back to 11,500 by the end of the week.
My shorts come with a rocket powered parachute, things are looking good!
And the news is....
Boom!
Gold took a dump.
So buy it
if you're lucky enough to see gold < $1,700 buy it like its a black friday special. just dont pepper spray everyone else
I'll be going back in below $1650. I think I'll get one more chance before the Fiat Ponzi collapses. Until then I am going to pick apart silver week by week.
Thinking the same thing here. One more good rout at least. At the same time, it is easy to notice that inventory at alot of dealers is getting slim. That says alot.
It says I have enough PM to last a few years of eating meat and drinking beer, paying bills and keeping a membership at the range.
My GLD is feeling some pain right about now
I just checked on my gold, opened the floor safe....no pain in there.
Hold on, let me check mine....
Still shining at any price!
GLD is for pussies
pussies that can't find their "O" in GLD!!
Pat, I'd like to buy a vowel.
thanks for this...lol
pussies and retards. physical, physical, physical. And buy the effing dip!
Yes, and of course this is bad news for Gold. I just cannot get it figured out, markets up this am = Au down. Market pulling back on this news = Au down more . WTF. Correlation, smorelation....F*^K...I give up.
fuck the correlation, just look at the charts
Central Banks leased gold, and decreased demand.
Simple solution for your plight my friend.
Every morning before the market opens grab the "Magic 8-ball" and shake vigorously while you ask the question, "Will GC & ES by correlated today?"
Please allow me to assist in your market analysis. :)
http://magic8ballonline.com/8ball/
I already tried that and the answer keeps coming up "LOL" !
The maniac central bankers can't have J6P figuring out what form of 'flation is going to flatten him or in what order or on what timeline. Partly because it results in manifest destiny, but mainly because it would undermine thier power base immediately. When the smoke clears, you can bet that whatever is the key for getting though the shitstorm to come (and rebuild on the other side) will be gone.
Make your bets. Hedge accordingly. Stay nimble. Stay alert. (go ahead with the Dos Equis ending.... )
This is the paradox trade whats-his-name was talking about; imminent printing should make gold go up, but when the news breaks it dives, and only climbs afterwards.
Ummm, they were not downgraded they were put on negative watch.
Merkozy is getting pressured from all corners of the globe to come up with a credible plan. This is just one more voice in the crowd telling them to get their act together. This is no surprise to anyone who has been awake the last 6 months.
Bullshit!
This information is already priced in.
Counting on it.
nice call, i need it so i can dump this FAZ position that i broke my nose on after the bernanke started dumping benjis from a helicopter over the eiffel tower...fucker...
Not long from now, these credit agencies will be shut down, you now by whom!
No way. The banksters love the volality.
"... love the volality..."
Hell, this ain't nothing but a little ride the news, year end bonanza for their upcoming bonuses.
They tell us to eat cake!
Too bad (for them) they forgot what comes next in that story...
That there is no cake and we come looking for theirs?
Last I looked I think someone tried to put some frosting on my ass. I'm afraid we are "cake".
French revolution?
Angela Merde-kel about to fire up those Heidelberg turboprinters.
Gold deustchmarks???
They did not criminalize the rating agencies when they created the subprime crisis and blew away 40% of the wealth in the world. What is the chance they do so now? It's time for Europe to get a few rating agencies of its own. Then they can quickly fire their CEOs should they dare to downgrade them. Such a system has been working well across the Atlantic.
Duh? The subprime meltdown only intensified governement interventions and power. Of course they did not criminalize rating agencies. Governments don't care about who's right or wrong, they care about power. Now that the rating agencies are threatening the State's house of cards, it is very, very plausible that state action will be taken against those rating agencies (who were left alone as long as they played the State's game).
I don't know what religion the guys at S&P have found as of late, but they should watch their backs now... Terrorism charges are as easy to file as ever nowadays.
"Tumbles" after synthetic manipulated ascension = too funny!
Obviously 'terrists who don't buy the "full faith and credit". Lock 'em up!
/sarc
But I thought it was all s'posed to be fixed?
Mark Cutifani, CEO of Anglogold notes buyers coming to them directly for large physical gold orders.
http://goldandsilverlinings.com/?p=1775
mayhem_korner noted:
It is fixed. Oh, wait, did you mean fixed as in repaired? Sorry.
Who cares, entropy obviates relativity. The global QEn fix is in. So need it be said? Bullish?
AA+ is the new AAA of the season.
The USA is so fashon forward.
This must be WILDLY BULLISH for the political utopia's bond markets! Belgium was downgraded last friday by S&P with a negative watch and instantly Belgium 10 yr bond has rallied roughly 150bps since then!
Here's something not wildly bullish. The most important news of the weekend, ignored by most.
http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/8530144/Shell-shuts-Caspian-office-50bn-Kashagan-project-on-ice.html
Royal Dutch Shell has stopped the Kashagan Phase 2. That field is planned to be almost 1 million barrels/day and it's already 3 years late. All projections need that flow in the near term and it's not coming.
Europe was to get that oil. Brent supply erodes, the new supply is late to never, goodbye Europe.
Most difficult field in the world to develop. Maybe too difficult. $136 Billion is the largest project of any kind in the world.
But everyone knows that, if we all try hard enough, we can wish all the oil fields full again with abiotic oil bubbling up from the Earth's chewy caramel center.
Could the SP finally grow a pair??
Ok, so a new treaty, closer union, fiscal kumbaya's and belt tightening will preserve those AAA's right?
It is so incredible to watch the market follow and react to the rumors..
of reality.
No one cares what S&P does they like Moody's are an outright joke. AAA today equals C- in previous years. Clowns!
Good thing they'll do this after hours, and just before open we'll have another rumor that will make everybody forget about this downgrade and send the market soaring.
Lather. Rise. Repeat.
The Tsar Pointless ratings agency gives the entire Earth's financial system an "F" for "Fucked".
So there.
...and on creditwatch negative to be downgraded to FF (fucking fucked).
Don't worry, the S&P experts will be convinced that AAA is what they will stay. Those that need more convincing will have broken kneecaps.
I love how the market's reaction was one of surprise.
Ben said WTF? I almost made it up over 127 SPY ugh!
Ben will fix it. Ben fixes everything...with tax payer dollars.
FRANCE IS NOT AAA
Repeat with me...
FRANCE IS NOT AA
....
AUSTRIA NEITHER
SPAIN will be downgraded to JUNK as we cannot pay nothing ....Dont invest in Spain. We are in default. Wait for a big sell off.
Luxembourg is finally getting recognition. So that's nice...
Luxembourg is just a country of criminals laundry money...
European family offices thinks they can open Luxembourg accounts in order to preserve their money....
Luxembourg cannot warrant nothing
As its just a country of deposits and no real economy....the most pure evidence of FINANCIAL TERRORISM = LUXEMBOURG
Switzerland is the next phase to lose banking secret _ Hidden accounts.
The PONZI SCHEME is burning with all ur money inside ....BANKSTERS ...
WE ARE ZEROHEDGE , we are the new rulez...
So do we go short or long Andorra and Liechtenstein?
Tyler, this is a glitch email. Watch for the email to refute soon.
Odd, on CNBS "We Are American Business" no mention of this yet.
SPY puts, bitchez
So considering the ramp up on bank downgrades, this is good for another 60 ES points up /sarc.
LOLOLOLOLOL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
oooohhhpp, time to go to work PPT... Ctrl + Alt +F9
Germany deserves to be downgraded. They have been playing with fire too long, and their banks are far too exposed to PIIGS debt and will be bailed out by the State.
Off we gooooooooooo !
Wee, sleekit, cow'rin, tim'rous beastie,
O, what a panic's in thy breastie!
Thou need na start awa sae hasty
Wi bickering brattle!
I wad be laith to rin an' chase thee,
Wi' murdering pattle.
I'm truly sorry man's dominion
Has broken Nature's social union,
An' justifies that ill opinion
Which makes thee startle
At me, thy poor, earth born companion
An' fellow mortal!
I doubt na, whyles, but thou may thieve;
What then? poor beastie, thou maun live!
A daimen icker in a thrave
'S a sma' request;
I'll get a blessin wi' the lave,
An' never miss't.
Thy wee-bit housie, too, in ruin!
It's silly wa's the win's are strewin!
An' naething, now, to big a new ane,
O' foggage green!
An' bleak December's win's ensuin,
Baith snell an' keen!
Thou saw the fields laid bare an' waste,
An' weary winter comin fast,
An' cozie here, beneath the blast,
Thou thought to dwell,
Till crash! the cruel coulter past
Out thro' thy cell.
That wee bit heap o' leaves an' stibble,
Has cost thee monie a weary nibble!
Now thou's turned out, for a' thy trouble,
But house or hald,
To thole the winter's sleety dribble,
An' cranreuch cauld.
But Mousie, thou art no thy lane,
In proving foresight may be vain:
The best-laid schemes o' mice an' men
Gang aft agley,
An' lea'e us nought but grief an' pain,
For promis'd joy!
Still thou are blest, compared wi' me!
The present only toucheth thee:
But och! I backward cast my e'e,
On prospects drear!
An' forward, tho' I canna see,
I guess an' fear!
wheres the comments now robotrader????????????
As soon as he is finished masturbating to CNBC-produced Bernankporn on his computer in his stinking PJs in his mom's basement, he will get right back to you with some typically idiotic one-liner mindless stock-pumping comment.
http://www.bluffthedonkey.com/Fat%20Guy%20Computer.bmp
http://images.cheezburger.com/completestore/2011/1/10/ba1639d5-ca89-4525...
Doesn't AAA imply they are gauranteed to be paid back? There's no fucking way they are going to pay any new issue back. With whose money?
Lehman and AIG were still AAA the day they went bankrupt.
If I recall they were downgraded to AA minutes before they went tits up.
"You had rated AIG and Lehman Brothers as AAA, AA minutes before they were collapsing. After they did fail, did you take any action against those analysts who had rated them?" Speier asked. "Did you fire them? Did you suspend them? Did you take any actions against those who had put that kind of a remarkable grade on products that were junk?"
and about moral hazard
"McDaniel answered first. "No, we did not fire any of the analysts involved in either AIG or Lehman," he replied. "An important part of our analysis was based on a review of governmental support that had been applied to Bear Stearns earlier in the year."\
http://www.huffingtonpost.com/2009/09/30/credit-rating-agency-anal_n_305587.html
The best way to panic is to panic first because at the end of the day the only thing that guarntees you getting your money back is your own due-diligence.
Bob- Have not seen you around lately. Nice to see you back!
Benny's
barring that, ours, and our kids, and their kids.
No problemo. None at all.
Great, more procrastinating.
pods
People come and go talking of Michaelangelo.....
honestly watching bbc today you would think all was fixed today... incredible!!
Incredible, maybe, that you believe a word that the BBC says.
They don't call it the British Bullsh!t Corporation for nuttin. LOL!
Incredible, as in lacking credibility.
Why does the market care now about the credit rating agencies? I thought everything was fixed last week?
Truly - the market could care less about rating agencies. What are they telling us that we don't already know? This will be easily ignored so long as the print option is on the table. That's all the market cares about, easy money. The bigger the debt problem, the more easy money, the better, as far as 'investors' are concerned.
You mean "couldn't care less".
If they "could care less", then you imply that they actually do care.
...and in other news, it appears that Iran was not bullshitting this time...
US Military Sources: Iran Has Missing US Droneand it is the super secret, super stealthy RQ-170. how did they find it, being super secret and super stealthy such as it was, you ask?
they looked up...
Love this fucking bullshit..... "About to announce".... someone obviously got the inside dope. All the big hedgefunds knew to pull the sell button right at 2pm. Fucking Thieves. Criminal cartel. If someone is reporting that they're about to report, then you know they all already got the word from the FED.
Just a few modifications of the code (to neglect trivial realities), hit enter and its back to ramp up mode.
Euro near overight session lows
Euro near overight session lows
Why don't the Germans, French, Americans, Brits etc all see the solution...it is soooo plainly obvious & simple.
All they have to do is push thru some massive debilitating lawsuit against all the ratings agencies, something to do with how they fraudulently accepted fees from Investment Banks to assign triple A credit ratings to toxic subprime debt...sue them into oblivion....not because of their culpability in the whole subprime saga, but mainly to get rid of them! If it weren't for all these pesky ratings agencies and their never-ending lecturing & nagging, and their constant downgrade threats, everything would be nice and easy. How many times have we had the entire day's rally erased because of a ratings agency pronouncement? Get rid of them all, and all will be good again.
Ha!!
Market is not allowed to penetrate 1256 (lots of selling down there).
... there be dragons...
Merkozy Song & Dance success...Check...Yellow Brick Road? Check...S&P? -->Hey Pal, you missed your cue! Does 4PM EST on your script mean anything to you?! Great now we need another rumor...Hillary what do you have? Iran? really? EVEN I DO NOT BELIEVE THAT SH*T anymore? Besides that is the OIL STORY LINE...we are talking stock now...Ben, Tim...need ya man...what you got?
Time to turn the printer up to 11, ay?
Coming back again as people realize the ratings agencies once again are so far behind this curve and this rally has nothing to do with fundamentals but rather just the next potential positive headline about plans to plan to fix things
Doesn't each European State have the Resolution Authority to take control of a troubled credit institution within its borders with the aim of preserving the continuity of financial services, ensuring financial stability and protecting depositors? Couldn't they keep most of the same employees and replace the execs by appointing a Commisioner from the State? Wouldn't this include imposing bondholder hair cuts, voiding CDS contracts and wiping out shareholders? Doesn't the ECB have the authority to recapitalize these State Owned Transitional Credit Institutions at will? Would Dec 24 - Jan 2 be enough time for the takeover?
1. Some states default
2. Troubled credit institutions (most) are nationalized to preserve continuity
3. ECB recapitalizes nationalized banks by popular demand
4. Banks become utilities, politicians get re-elected
http://www.ecb.int/ecb/legal/pdf/en_con_2011_72_f_sign.pdf
Markets are hell bent on rallying...seems that nothing will break this rally short of an outright hard default. Fed & Co. have put so much $$$ in the system, liquidity is trumping fundmentals for the time being, my guess markets will keep rallying well into 2012, before Europe hits a real and final wall but mid/late 2012 and take the markets with it.
Regards,
Nawar
Bernanke looks sick.
there cant be an outright default it would trigger CDS's and nobody has the money to cover them
credit default swaps will never be paid. Nothing but pure fraud in my opinion. ISDA decides defaults and the members are the primary banks who sold much of the garbage. You are right though and that is essentially why they will never be paid.
next stop euro must break 1.3350area and close below and we will test 1.3250 area
yeps short EU from 3415~20 target 3218 :-)
The VIX is getting a stiffy!
new daily lows in euro
I thought it was illegal in Euor-land to rate a sovereign country???
Didn't they already pass something so S&P actions were meaningless?
Nice little scare tactic, eh?!?!
They can take down the eur/usd and the aud/usd and then run it back up, without showing any rally in the currencies.....story was leaked to take down the eur and aud.... so they can push it back up tonight or starting at 3am tomorrow morning.
Don't worry the robots will fix that chart right up.
Game on for the bears....love it. Manufacturing data down also, like ZH showed last week, it's finally hit the cheersquad at CNBC.
As usual
Gold and gold stocks obliterated on this news.
First items always thrown out the window upon any news of "contagion" risk.
As usual, youre as clueless as ever...too bad you dumped your gold, if you ever really had it, at $900 where you called 'the top is in'. Gold in dollars means nothing....I know that is way over your head but a fact all the same.
As usual
Intelligence and big-picture view obliterated by RobotLemming's drivel.
First items always thrown out of the window upon any news of stocks being levitated by bernankprinting and the transitory, illusory "safe haven" dollar plays of all the other lemmings.
euro -.12% and es +.90% nice market manipulation....to keep the mases in the clouds so they dont c their 401ks crippled and create real panic...nice job manipulating the mkt uncleBen
Macy's still at 52-week highs while "hard asset" stocks get smoked.
It got cut in half for the day. And Macy's sells Chinese crap. You want retail, buy JWN.
"...52-week highs..."
Now, where have I heard that before? Oh yeah, from RobotTrader's theme song: http://www.youtube.com/watch?v=TT9VXxuc0LE&feature=mfu_in_order&list=UL
RobotLemming still high as a kite while smoking his pole to bernankporn.
EUR is sell, USD bid. Await Asia open to tell the braindead market where the real risks are...and that be China.
Europe will shut down on oil inflation next few weeks i.e strikes and riots.