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S&P Downgrades 34 Of 37 Italian Banks - Full Statement

Tyler Durden's picture





 

S&P just downgraded 34 of the 37 Italian banks it covers. Below is the full statement. And so get get one second closer to midnight for Europe's AIG equivalent: A&G. As for S&P, this is the funniest bit: "We classify the Italian government as "supportive" toward its banking sector. We recognize the government's record of providing support to the banking system in times of stress." Even rating agencies now have to rely on sovereign risk transfer as the only upside case to their reports. Oh, and who just went balls to the wall Italian stocks? Why the oldest (no pun intended) contrarian indicator in the book - none other than permawrong Notorious (Barton) B.I.G.G.S.

Mainly Negative Rating Actions Taken On 37 Italian Financial Institutions On Sovereign Downgrade And BICRA Change

LONDON (Standard & Poor's) Feb. 10, 2012--Standard & Poor's Ratings Services today said it has lowered its ratings on 34 Italy-based financial institutions. The downgrades follow the lowering of the unsolicited long- and short-term sovereign credit ratings on the Republic of Italy (BBB+/Negative/A-2; see "Italy's Unsolicited Ratings Lowered To 'BBB+/A-2'; Outlook Negative," published Jan. 13, 2012, on RatingsDirect on the Global Credit Portal). They also reflect the revision of our Banking Industry Country Risk Assessment (BICRA) on Italy to group '4' from group '3', and of our economic risk and industry risk scores--both components of the BICRA--on Italy to '4' from '3' (see "BICRA On Italy Revised To Group '4' From Group '3' On Weakening Economic And Banking Industry Conditions," published Feb. 10, 2012).

In addition, we have affirmed our ratings on two Italian financial institutions and removed them from CreditWatch with negative implications. We have also kept the ratings on one Italian financial institution on CreditWatch with negative implications.

Mainly Negative Rating Actions Taken On 37 Italian Financial Institutions On Sovereign Downgrade And BICRA Change

OVERVIEW

  1. On Jan. 13, 2012, Standard & Poor's lowered its unsolicited long- and short-term sovereign credit ratings on the Republic of Italy to 'BBB+/A-2' from 'A/A-1', assigned a negative outlook, and removed the ratings from CreditWatch negative.
  2. In our view, Italy's vulnerability to external financing risks has increased, given its high external public debt, resulting in Italian banks' significantly diminished ability to roll over their wholesale debt.
  3. We anticipate persistently weak profitability for Italian banks in the next few years, and a risk-adjusted return on core banking products that may not be sufficient for banks to meet their cost of capital. We believe this may be negative for the Italian banking industry's stability.
  4. We are revising our Banking Industry Country Risk Assessment (BICRA) on the Republic of Italy to group '4' from group '3', and our economic risk and industry risk scores, two components of the BICRA, to '4' from '3'.
  5. Our revised BICRA and economic risk score for Italy have resulted in primarily negative rating actions for the Italian banks we rate.

 
BICRA ACTION

On Feb. 10, 2012, Standard & Poor's Ratings Services revised its Banking  Industry Country Risk Assessment (BICRA) on the Republic of Italy (unsolicited ratings, BBB+/Negative/A-2) to group '4' from group '3'. It has also revised  the economic risk and industry risk scores, two components of the BICRA, to '4' from '3'. These revisions follow our recent downgrade of the Republic of Italy (see "Italy's Unsolicited Ratings Lowered To 'BBB+/A-2'; Outlook Negative ," published Jan. 13, 2012, on RatingsDirect on the Global Credit Portal).

RATIONALE

The BICRA change reflects our view that Italy's vulnerability to external financing risks has increased, given its high absolute amount of external public debt. This results in adverse spill-over effects on Italian banks, in particular significantly diminishing their ability to roll over their wholesale debt. In addition, we anticipate persistently weak profitability for Italian banks in the next few years, and a risk-adjusted return on core banking products that may not be sufficient for banks to meet their cost of capital. We believe this may be negative for the Italian banking industry's stability.

Standard & Poor's BICRA rankings integrate its view of the strengths and weaknesses of a country's banking system compared with those of other countries. A BICRA is scored on a scale from 1 to 10, ranging from the lowest-risk banking systems (group '1') to the highest-risk (group '10'). Countries in BICRA group '4' include Czech Republic, South Africa, Mexico and Brazil.

Our revised BICRA and economic risk score for Italy have resulted in primarily negative rating actions on the Italian banks we rate (see "Mainly Negative Rating Actions Taken On 37 Italian Financial Institutions On Sovereign Downgrade And BICRA Change," published Feb. 10, 2012).

The economic risk score of '4' is based on our revised opinion of Italy's "economic imbalances," one of the score's main components,  to "intermediate risk" from "low risk," as our criteria define these terms.

The economic risk score is an input in our calculation of risk-weighted assets (RWA) for banks under our risk-adjusted capital (RAC) framework (see "Bank Capital Methodology And Assumptions," published Dec. 6, 2010). Our revised economic risk score will likely lead to moderate declines in our RAC ratios for banks operating in Italy.

We believe that Italy's higher vulnerability to external financing may represent a risk to the sustainability of Italy's balance of payments. The deepening political, financial, and monetary problems in the Economic and Monetary Union (EMU or the eurozone) are exacerbating the external funding constraints on the Italian public and private sectors, in our opinion. Italy's external financing costs have risen markedly in recent months and may remain elevated for an extended period as the Italian government and banks scale back cross-border financing. Still, we acknowledge that imbalances in asset prices and the buildup of leverage are low in Italy. In our view, these factors remain key supports for Italian banks' creditworthiness.

Our assessment of "intermediate risk" for "economic resilience" and "credit risk in the economy," the two remaining components of the economic risk score, remains unchanged.

Italy has a large and diversified economy with a sizable domestic market and manufacturing export sector. However, we anticipate weaker GDP growth for Italy relative to its peers owing to Italy's high public sector debt, which in our view is discouraging investment; weakening Italy's export competitiveness; and to Italy's worsening demographic profile.

The Italian private sector carries, in our view, moderate debt at 128% of GDP expected at year-end 2011. Household indebtedness, at 45% of GDP, is low relative to levels in peer countries. In addition, Italian households' financial wealth is about two times GDP, which sustains their creditworthiness in case of difficulties. Italy's banking sector typically has high levels of nonperforming assets (NPAs) relative to countries that we assess as having similar economic risk. The high NPAs reflect Italian banks' large share of loans to small and midsize enterprises, which form the backbone of the Italian economy. Extensive use of collateral has, however, generally enabled banks to post only moderate credit losses.

The industry risk score of '4' is based on our revised opinion of the Italian banking sector's "competitive dynamics" and "systemwide funding" to "intermediate risk" from "low risk," as our criteria define these terms.

Our view that Italian banks' profitability will likely remain weak in the next few years reflects Italy's flat economic growth, and banks' increased cost of funding and still high credit provisions. Risk-adjusted returns on core banking products may not be sufficient for banks to meet their cost of capital. We believe this may be negative for the Italian banking sector's stability. Based on our estimates, the return on adjusted assets related to domestic banking business should average close to 30 basis points in 2011-2013. The net income-to-revenue ratio should bottom out in 2012 and remain below 10% in the same period. While these profitability ratios would be only slightly below the average for 2009-2010, they would represent less than half of returns in 2005-2008. Persistently weak profitability for the next few years, together with increased cost of capital for the whole banking industry, could lead Italian banks to write down a large part of the goodwill they booked during the consolidation phase of the past decade. We note, though, that Italian banks' risk appetite generally remains restrained, reflecting their traditional business model.

We believe that "systemwide funding" risk for Italian banks has increased, mainly owing to the effects of the sovereign debt crisis in Europe. European Central Bank (ECB; AAA/Stable/A-1+) funding provided to Italian banks was up sharply at €203 billion at end-January 2012, or 6% of total funding, versus €41 billion at end-June 2011. In our view, the steep rise is due to Italian banks having largely lost their access to external wholesale debt capital markets, which we believe will in turn significantly reduce their ability to roll over their wholesale debt this year. In our opinion, Italian banks' recourse to the ECB may further increase after the ECB's next Long-Term Refinancing Operation (LTRO) scheduled in late February 2012 (for further details on ECB funding to eurozone banks, see "Assessing The Severity Of The Eurozone Recession Is A Close Call," published Jan. 31, 2012). We believe that the ECB's proactive stance on providing liquidity to Italian banks has avoided a domestic credit crunch.

Italian banks' recourse to wholesale domestic or cross-border funding is contained, in our opinion, and to a degree offsets our concerns about systemwide funding. The banking system's core customer deposits (including bonds placed with retail clients) cover between 90% and 100% of its customer loans. Italian banks depend on external debt to cover about 15% of total loans on a net basis, by our estimates. But a significant portion of external debt relates to funding that foreign banks have provided to domestic subsidiaries, which we believe is clearly less confidence sensitive. We also believe that Italian banks' pools of assets eligible for ECB funding is sufficiently wide to cover 2012 wholesale maturities. In addition, the Italian government has offered Italian banks the option to request a state guarantee for ECB funding received in an amount up to their regulatory capital. The Bank of Italy has also temporarily expanded the eligibility criteria for credit claims used as collateral in the ECB's lending operations, as part of the ECB's support measures for banks. As for other eurozone members, our assessment of Italy's systemwide funding incorporates our expectation that the ECB will maintain its liquidity support for banks.

We have maintained our assessment of "intermediate risk" for Italy's "institutional framework." Italy has gradually aligned its regulatory standards with international best practices in recent years. Supervision is effective and hands-on, in our opinion. Italy's banking regulator has a good record in dealing with individual bank crises, in our view. However, we believe that some banks, particularly small ones, tend to have less-than-optimal governance. Still, Italy's banks still generally have some leeway that allows them to delay recognizing credit losses.

We classify the Italian government as "supportive" toward its banking sector. We recognize the government's record of providing support to the banking system in times of stress.

 


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Fri, 02/10/2012 - 14:38 | Link to Comment Yen Cross
Yen Cross's picture

 Sweet! Hey ECB ya gonna go indirect on this one?

Fri, 02/10/2012 - 14:47 | Link to Comment redpill
redpill's picture

I wonder if they've replaced their front door since the last time the Italian police kicked it in.

Fri, 02/10/2012 - 17:49 | Link to Comment AldousHuxley
AldousHuxley's picture

Italy to be kicked out of G8 soon.

Fri, 02/10/2012 - 14:47 | Link to Comment VanillAnalyst
VanillAnalyst's picture

TIMBERRRRRRRRRRRRRRRRRRRRRRR!!!!!!!

Fri, 02/10/2012 - 15:02 | Link to Comment tiger7905
tiger7905's picture

Latest form Charles Nenner, see's Q2 as end of any rally, the fall off into 2013...

http://goldandsilverlinings.com/?p=1881

Fri, 02/10/2012 - 15:18 | Link to Comment kito
kito's picture

@vanillA--apparently there isnt anybody in the woods to hear the tree fall...................therefore did it make a sound?????

Fri, 02/10/2012 - 16:55 | Link to Comment CClarity
CClarity's picture

So UniCredit goes and does a capital raise and they still are downgraded.  Which three weren't downgraded?  And what are their ratios?

Fri, 02/10/2012 - 15:26 | Link to Comment stocktivity
stocktivity's picture

wow...usually they wait for our markets to close on a Friday.

Fri, 02/10/2012 - 16:14 | Link to Comment Sharks with las...
Sharks with laser beams's picture

Oh boy, I read from Armada Markets website a week ago that we should all go short euro and come back in a few years. Well, I will do it now.

Fri, 02/10/2012 - 16:47 | Link to Comment Sharks with las...
Sharks with laser beams's picture

Holy Batman, let's take peace of this action next time: http://bit.ly/wJKKGT

Fri, 02/10/2012 - 14:39 | Link to Comment PicassoInActions
PicassoInActions's picture

now S&P will be attacked again...

How come we don't hear much from Moody?

Fri, 02/10/2012 - 14:43 | Link to Comment Dr. Engali
Dr. Engali's picture

 

How come we don't hear much from Moody?

 

Because uncle Warren the pervert owns it.

Fri, 02/10/2012 - 14:51 | Link to Comment spekulatn
Fri, 02/10/2012 - 15:09 | Link to Comment Dr. Engali
Dr. Engali's picture

Yeah I saw that. Obummer is taking good care of his sagely  uncle warren. He killed the pipeline deal and now he slaps BAC on the wrist. I'm sure that our kleptocratic old grandfather investor will have a nice big fund raiser for obummer. 

Fri, 02/10/2012 - 15:41 | Link to Comment CH1
CH1's picture

I may be sorry I asked, but why do you call Buffet a perv?

 

Fri, 02/10/2012 - 16:19 | Link to Comment Dr. Engali
Dr. Engali's picture

Have you seen his relationship with Beck Quick? Not to mention his talks about baths.

Fri, 02/10/2012 - 17:45 | Link to Comment Bob
Bob's picture

In the same movie, his 26 year old granddaughter talks about him formally disowning her--in writing--for appearing in the documentary The One Percent.

The guy's a real asshole. 

Nice movie, btw, and on netflix. 

http://www.imdb.com/title/tt0819791/plotsummary

Fri, 02/10/2012 - 17:53 | Link to Comment AldousHuxley
AldousHuxley's picture

you can work your ass off to accumulate millions.

 

to hoard billions you've got to be a lucky asshole who won't admit as such.

 

buffett forbids family members from speaking out because he know he is just......lucky...is afraid of the truth getting out.

Sat, 02/11/2012 - 14:31 | Link to Comment OldPossum
OldPossum's picture

Seems the flick was made in 2006 -- kind of prophetic,isn't it?

WE ARE THE 99 %! Greetings from OccupyZurich! http://www.occupyzuerich.ch/

Fri, 02/10/2012 - 21:52 | Link to Comment disabledvet
disabledvet's picture

Beck's just doin' her job. T'ain't no thing, bro. Speaking of Beck!:
http://www.youtube.com/watch?feature=player_detailpage&v=b_5SeTiOtG4
what can i say...it's my mood now.

Fri, 02/10/2012 - 14:46 | Link to Comment earleflorida
earleflorida's picture

labouring in the UK

wait for it - should/ will be, a smashing report

Fri, 02/10/2012 - 14:41 | Link to Comment Dr. Engali
Dr. Engali's picture

I'm surprised this came out while the market was open. I guess waiting until the European markets closed was enough.

Fri, 02/10/2012 - 14:43 | Link to Comment brewing
brewing's picture

you just can't hide the "news" forever...

Fri, 02/10/2012 - 14:48 | Link to Comment blu
blu's picture

Well sure, because this news is only important to Europe. /s

Fri, 02/10/2012 - 14:42 | Link to Comment SheepDog-One
SheepDog-One's picture

Wow good news! Because surely NOW we'll get 'QE3' I'm sure...or at least more rumors of QE3. 

Fri, 02/10/2012 - 14:46 | Link to Comment Dr. Engali
Dr. Engali's picture

It's coming any day now.......I can feel it......que3 I just know it's coming.....wait for it.....

Fri, 02/10/2012 - 14:45 | Link to Comment Schmuck Raker
Schmuck Raker's picture

Just 34 of 37...better than expected.

Fri, 02/10/2012 - 15:25 | Link to Comment Randall Cabot
Randall Cabot's picture

Yeah, the market shrugged it off.

Fri, 02/10/2012 - 14:45 | Link to Comment schismjism
schismjism's picture

Well, nothing will change till we get rid of this bankocracy. Direct democracy all the way.....

http://samplocracy.wordpress.com/

Fri, 02/10/2012 - 14:54 | Link to Comment LowProfile
LowProfile's picture

"Direct democracy all the way....."

Nice try, but that's what caused the problem:  Too much democracy...

...NOT ENOUGH REPUBLIC.

Fri, 02/10/2012 - 17:59 | Link to Comment AldousHuxley
AldousHuxley's picture

democracy fails when voters are bunch of idiots.

 

We have an empire. American Empire.

 

You don't become the richest country in the world exporting nothing.

Fri, 02/10/2012 - 14:46 | Link to Comment Id fight Gandhi
Id fight Gandhi's picture

I'm sure its bullish. Even though they should pay higher interest rates, the central planners will find a way to reach around that,

Fri, 02/10/2012 - 14:48 | Link to Comment Olympia
Olympia's picture

Loan sharks knew that if they took the dollars printing machines under their control they could suffocate the world ...they could initially suffocate USA and after taking the USA from the Americans, they could move and suffocate the whole world and take the countries from their people.

 

FED printed cheap money and loansharking multiplied this money in an unnatural way within the American economy boarders and they discarded them abroad so that they did not threaten USA. USA became the first state in the world with artificial “breathing”...

It cannot be possible but just in the USA for only the last year, more than one million houses were seized. It cannot be impossible but the New World has returned to tents and shelters ..has returned to the ages of Columbus. It cannot be possible that we allow to a few loan sharks looting the toils and the assets of people...

 

http://eamb-ydrohoos.blogspot.com/2012/01/global-debt-crisis.html

 

------------------------

Global Debt Crisis

Authored by PANAGIOTIS TRAIANOU

Fri, 02/10/2012 - 14:48 | Link to Comment PaperBear
PaperBear's picture

Have any of the credit rating agencies got any credibility left ?

Fri, 02/10/2012 - 14:53 | Link to Comment surf0766
surf0766's picture

Nothing has any credibility left.

Fri, 02/10/2012 - 15:48 | Link to Comment Negro Primero
Negro Primero's picture

“Plot against Benedict XVI
He will die in 12 months”

"A note delivered to the Pontiff by cardinal Castrillon a month ago, reports what archbishop of Palermo, cardinal Romeo, said in one of his conversations in China last November: “His interlocutor thought, with fear, that the Pope would be the victim of an attack”. Scola could be his successor. The spokesman of the Holy See, Lombardi: “So incredible we cannot comment on”.

http://www.ilfattoquotidiano.it/2012/02/10/%E2%80%9Cplot-against-benedic...

Fri, 02/10/2012 - 15:52 | Link to Comment Atomizer
Atomizer's picture

They are waving the fear mongering card in the air. The race card tactics didn't work.

Fri, 02/10/2012 - 14:56 | Link to Comment satan2liberals
satan2liberals's picture

Cool looks like greece will implode before I DO.

kinda tired of all of the govt manipulations since I'm short 300+%

Fri, 02/10/2012 - 14:58 | Link to Comment Dick Darlington
Dick Darlington's picture

Oh the irony! Italian (and spanish) covered bonds have been the darlings of London banks and many idiot "investors" during the early days of 2012. Massive tightening of spreads, ignoring all the bad news, reality and what not. These muppets NEVER learn. When the time to unwind comes it will be one big shitshow. Even now when hubris is running high the secondary market screens show 1-2 figure (cash) bid-offer spreads and of course the actual execution levels are even worse. Bank balance sheets are not accommodative to take down big inventory of illiquid crap when the selling time comes but  as usual that's something to worry abt later.

Fri, 02/10/2012 - 15:03 | Link to Comment dfh85
dfh85's picture

qe3 & 2nd ltro = covered bonds rally, no?

Fri, 02/10/2012 - 15:16 | Link to Comment Dick Darlington
Dick Darlington's picture

Well of course, not to mention the ongoing second covered bond purchase program by the "institution of zee price stabeeletee" ie ECB. The worse the shit the better the performance. Same ol' same ol', wash, rinse and repeat.

Fri, 02/10/2012 - 15:30 | Link to Comment dfh85
dfh85's picture

So in the short to medium term the banks will be making profit on their covered bond position but in the long term (if everything tanks) you think theyll have trouble liquidating? 

I think we are near the bottom now, the centralised govt banks can't allow everything to reach 0 and will just keep printing and providing liquidity until markets consolidate and resume the uptrend. I think the covered bond positions they have opened now will prove to be profitable in the long term...

Fri, 02/10/2012 - 15:01 | Link to Comment Vince Clortho
Vince Clortho's picture

Bullish.  S&P to infinity!

Fri, 02/10/2012 - 15:11 | Link to Comment Mutatto
Mutatto's picture

BREAKING NEWS - "Italian police threaten to arrest S&P officials due to rating measures"

 

LOL

Fri, 02/10/2012 - 18:06 | Link to Comment AldousHuxley
AldousHuxley's picture

Italians not smart enough to frame the officials with sexual harassment charges while replacing them with chosen ones like US did with IMF before IMF was going to shit on US for debt to gnp ratio.

Fri, 02/10/2012 - 15:18 | Link to Comment vote_libertaria...
vote_libertarian_party's picture

Well that crashed the DJIA..errr..uhhhhh...0.1%

Fri, 02/10/2012 - 15:34 | Link to Comment SillySalesmanQu...
SillySalesmanQuestion's picture

Acually, the board has all red arrows right now...wonder what the mumbleheads are saying about that on CNBS.

Fri, 02/10/2012 - 15:18 | Link to Comment web bot
web bot's picture

Sort of reminds me of the battle of Helms Deep, where the Uruk Hai and other Orcs-friendlies are putting up the ladders against the walls... Just in this version, it won't end well.

The Precious in this version = Precious metals.

Fri, 02/10/2012 - 15:20 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

Still, Italy's banks still generally have some leeway that allows them to delay recognizing credit losses.

ya gotta wear a tie to think regulators should allow this zombieBullshit!

trust me!

Fri, 02/10/2012 - 15:26 | Link to Comment SillySalesmanQu...
SillySalesmanQuestion's picture

You mean....(gasp) Bankster clothing...? Horrrors, I am shaking so bad, I think I need a triple scotch.

Fri, 02/10/2012 - 15:26 | Link to Comment carbonmutant
carbonmutant's picture

Does that mean that the price of Parmigiano Reggiano will be coming down...?

Fri, 02/10/2012 - 15:30 | Link to Comment BudFox2012
BudFox2012's picture

Great.  So now I have to spend my days watching Greek AND Italian riots.  Not enough hours in the day...

Fri, 02/10/2012 - 15:35 | Link to Comment satan2liberals
satan2liberals's picture

VXX up almost 9%, lol.

 

spot up 11%

Fri, 02/10/2012 - 16:49 | Link to Comment walküre
walküre's picture

overbought short term.

Fri, 02/10/2012 - 15:44 | Link to Comment Zero Govt
Zero Govt's picture

 

"S&P Downgrades 34 Of 37 Italian Banks"

That's not what the ECB's Stress Tests (No.1 & No.2) came up with!!

What could possibly have gone wrong (or right?) with the ECB's fundamental analysis???

 

Fri, 02/10/2012 - 18:39 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

perhaps S & P disa-greed w/ the ass-umption that sovereign debt should be ass-igned a zer0TM risk factor?

so, the tests were fiiiine, but this is an "independent" opinion, but it's still pretty gQQd given the stinkin piles of hoooey involved here, and the layered opacity of the ponziedZombied info, Z_Gov!

with the scaling back of the cross-border financing, the play here is to short tacoBell via YUM

 

Fri, 02/10/2012 - 15:44 | Link to Comment AAA21
AAA21's picture

It amazes me that an old fart like Notorious B.I.G.G.S. is still managing money and considered some kind of "Guru".

The guy should be locked up in an geriatric ward and not allowed to touch a Bloomberg terminal under any circumstances!

Fri, 02/10/2012 - 15:50 | Link to Comment Negro Primero
Negro Primero's picture

...no problema:

 

"Obama, Full Confidence In Monti, Joint Pledge To Push For Growth"

(ANSA) - Washington, February 10 - United States President Barack Obama on Thursday voiced full confidence in Mario Monti as the Italian premier bids to ease the eurozone crisis.

Speaking after talks at the White House, Obama also called for financial firewalls to protect the euro to be strengthened.

Monti, for his part, stressed that Italy and the US had a "shared commitment for growth," which was "an imperative".

"Washington's support helps us to continue along the path of reform," he said, vowing to convince German Chancellor Angela Merkel of the need to "do more" on growth and defending the euro.

Monti said he was "fully satisfied" with the first day of his trip to Washington, in which he also garnered the recognition of the US Congress which said it was "looking with great interest" at Italy's turnaround.

http://www.ansa.it/web/notizie/rubriche/english/2012/02/10/visualizza_ne...

 

Fri, 02/10/2012 - 16:28 | Link to Comment jmcadg
jmcadg's picture

Did Barton just shit his smalls?
Boom goes tha dynamite.

Fri, 02/10/2012 - 17:26 | Link to Comment AldoHux_IV
AldoHux_IV's picture

This world is so ass backwards-- it's hell bent on saving the banking sector when the banking sector is the problem. For fuck's sake

Fri, 02/10/2012 - 17:36 | Link to Comment Olympia
Olympia's picture

GERMANY, the DISGRACE of Europe

...the barbarians, who forced beautiful Europe to get down Zeus’“back” and made her a prostitute ...the unworthy Europeans, who in 1945 “took Europe down” from “Mount Olympus” and in 2012 relinquished “enslaved” Europe to the Phoenician loan sharks.

Germans are proved to be the easy solution to breach Europe’s door. Whoever wishes to “set foot” on Europe and demolish it, the only thing he has to do is to “fool” the Germans. For a second time in less than fifty years, Europe’s idiots become the victims of foreigners and they serve their interests at the expense of Europe...

 

http://eamb-ydrohoos.blogspot.com/2012/02/germany-disgrace-of-europe.html

_____________________

 

The German traitors of Europe along with the Phoenicians from Asia may have forced Europe to get down from the "back” of the Greek “bull”, but it remains to be seen how they shall pull it through with the “bull”.

 

Authored by PANAGIOTIS TRAIANOU

Fri, 02/10/2012 - 17:44 | Link to Comment DutchMadness
DutchMadness's picture

Somebody is making a lot of money from this downgrades. The question is: who?

Fri, 02/10/2012 - 18:47 | Link to Comment supafuckinmingster
supafuckinmingster's picture

Most recent downgrades have been by S&P. Where are Moodys and Fitch these days? Are S&P simply more cavalier, or are the other two just bought and paid for?

Sun, 02/12/2012 - 03:57 | Link to Comment Tom Green Swedish
Tom Green Swedish's picture

The Mafia is not going to be happy.

Do NOT follow this link or you will be banned from the site!