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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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Somewhere in the coming downgrades will be the US. It's the supreme, almighty debtor. First, stuff another 15 trillion in Bernanke and the federal Reserves's imaginary balance sheet.
US was downgraded in August.
momos you drug addicted f*ck nuts...best look at your metal charts we have a fat juicy sell on indust metals. Asia sells next few hrs, best forget the fantasy rally you are pushing for.
And just today the porn watching midgets at Fitch were praising the already bailed out and completely insolvent Ireland and said they are not planning to drop Ireland into junk. Fookin ROFLOL!!!
So...do these ratings schmucks think we're thick?
Do they not think that we, all on our own, can figure out that German/French bailout plans will involve debasing the Euro currency & destroying the fiscal balance sheets (as they take on more & more toxic mediterranean assets)? Do they not think we've already figured out that the Euro needs to be far far lower, and that German borrowing rates need to go higher to reflect the reality that their moral authority has been greatly compromised? We need these frikkin 'johnny come latelys' to tell us this?
Frikkin arrogance of these morons. They're always the ones who come barging in shouting "holy moly, look!! that house over there is on fire!!" when we've already been standing around doing nothing but watching it burn for ages!
An Ezero lehman coming this week. Whole stage being set for the benron burnokio to save the debt based fiat this 12/13. Worship the B LOL
I'd expect the coming EU treaty changes to address the impact of the rating agencies negatively affecting their funding mechanisms rendering those agencies irrelevant.
NO WAY!?!
Total Government Net Debt (% of GDP) for Austria in year 2010 is 49.814 %
Total Government Net Debt (% of GDP) for Finland in year 2010 is -56.797 %.
Total Government Net Debt (% of GDP) for France in year 2010 is 74.551 %
Total Government Net Debt (% of GDP) for Germany in year 2010 is 53.818 %
http://www.economywatch.com/economic-statistics/economic-indicators/Gene...
Yeah but Germany and France have not recapitalized their banks. If they do, they are bankrupt.
Indeed. The point was to show Finland as an outlier in that "AAA" group with minus-sign infront of the net debt/GDP figure. There's no such toxic, oversized and overleveraged banks in Finland either.
Yeah Finland shouldn't be downgraded. France, Austria and Germany? Totally.
The UK, US and Japan should be downgraded too...
Also I think your website sucks... Japan's ``net debt`` at only 127%? BS.
Not my website. ;-)
Austerity is either going to be forced on Europe or accepted by Europe. There is really no other way.
Austerity is being asked to be taken by Italians under Monti in Italy just today pending Parliment approval. Greece is already undertaking cutbacks imposed by LPap/Gpap and are having a degree of success. Same goes in Ireland.
The reality is it is not only necessary in Europe but here in the US as well and it would be much easier if we do it under our terms now and not have the market force it upon us as is the case in Europe.
There is one problem with austerity - the next elections.
I dont know about time to panic. thats a little extreme. i mean here we are at 1.3388 on the euro when everyone has been calling for parity for the last 6 months. Euro will rally on this. Too many joe six packs are short the euro. update - euro 1.3395
it's putrid to the extreme that S&P, a complicitor in dollng out much of the toxic crap that sits on the books of so many, is now ,,,wait for it....... threatening to downgrade holders of what it now sees as toxic debt. You couldn't make this shit up.
Well, you've got to hand it to the eur. This cat has more than 9 lives.
lol Hungarian opposition party MSZP wants a tobin tax here in Hungary.
How more do the Hungarians want to fuck up this country? I bet the moment they do that things go 50% lower from current levels....
Time to change the tune... "free markets" my ass
just a matter of time as some bs bullish rumor/story comes out....
Complete and utter MANIPULATION.
...... "ABOUT TO DOWNGRADE"
EITHER A COMPLETELY BASELESS RUMOR CIRCULATED BY SOME HEDGIE OR A LEAK FROM THE AGENCIES TO THE HEDGIES, COURTESY OF UNCLE SAM - TRYING TO RALLY DOLLAR
LOL !!
GS is not dead, the fight continues...S&P forever shill for the WS/GS cabal. Not that the Euro zone is not the OTHER face of the western Oligarchy clique.
Get over it.. the credit ratings are meaningless, there is too much debt worldwide, for any country, for any State, for any individual. Its all crap and will never be repaid. So all credit will over time be downgraded and rates will not go up. Look at the USA, the worse of the worse and its rates continue to go down.
Bullish for Deutsche Bank.
How dare they.
We ARE the highest place below seal level, AAA.
U.S. Treasuries and muni-bond debt still pinned at the highs.
Everyone still clamoring for "Paper"
And dumping "hard assets"
http://www.wallstreetbear.com/board/view.php?topic=91610&post=331338
Lemmings, the lot of 'em
Tyler, ban this fucking troll already.
The only thing at work in this market is MIS-INFORMATION. There are no fundamentals driving the eCONomy higher.
LOL. Cramer got bullish this morning on the notion that Geithner and Bernanke are now involved.
His beta chasin' butt buddies
I wonder how this will affect financial stocks, since last Sunday after S&P's downgrade-fest, Fed pumped the markets like a blowfish and banks had an average 10% weekly rally.
I'm thinking that another $70 billion injection will suffice for another weekly distraction.
The last hour of trading is going to be very interesting.
Just the on going pressure so germany opens the printing press party...
ha ha, Billy Mays would/ve been useful in this situation
here'a a good children's book that illustrates the inevitale outcome of compounding interest.
it might help the global political class give up thier "war on math"
http://www.amazon.com/One-Grain-Rice-Mathematical-Folktale/dp/059093998X
Got in with FAZ @ 38.00. Tumble away. Oh and yea First Post.
another new daily low comin for the eruo ?
Honestly, every time I start to get some unexplained bulish feeling about economy, excuse the phrase, Shit hits the fan, and the markets slide for months. It is better and more honest advice than you will ever get from S&P, Moodys and it is completely for free. And lately I have feeling that we may be past the worst, and that surelly means a severe bear market for equities.
And a good news for the PM bugs, I have been slightly less optimistic about $200 per ounce Ag. That is in itself as bullish for PM as any fundamental reason you can name.
I think that the FT story was written in Squid ink..... Sorry, aint buying it till it happens......
Unless perhaps that this was what last weeks manipulation was about? Raise it so you can drop it?????? and it dont fall so far?????????
WSJ just reported S&P might downgrade all 17 of the eurozone. Dow down another 30
sorry to many saves
WSJ just reported S&P might downgrade all 17 of the eurozone. Dow down another 30
WSJ just reported S&P might downgrade all 17 of the eurozone. Dow down another 30
Buying support keeps showing up at 1250
You had me laughing hard there brother. Thanks for posting that!
Its amazing the EU has kept this charade going on this long. Seriously how is the USA not AAA and these European ones AAA (Another ratings scam much like the Housing one, seriously the EU's government system is much worse then the USA's, Belgium doesnt even have a government). If I was the United States government I would slap these ratings companies big time. They are the main culprit of the housing scam. If they didn't rate the sub prime mortgage crap AAA then the banks would NEVER been able to sell them.
Here are the real stats. The USA is twice as much productive as Europe. Infact the only country with a significant amount of population that is even close to productivity and net worth is Japan. For arguments sake China's productivity per person is .42 - USA Ten Times more productive, and India .24 - USA 20 times more productive. Maybe India will actually surpass the USA if only they can increase their population to 25 billion people.
http://en.wikipedia.org/wiki/World_distribution_of_wealth
Percent of World Population:
Europe: 9.62
USA: 4.67
Percent of World Net Worth
Europe: 26.42
USA: 25.07
No wonder why they are called PIIGS.
You must be joking.
USA is not AA, it is JUNK, same as Europe, as are all other spenders over their means in this world.