S&P Issues Statement On EFSF, Says "Almost Certain" European Governments Would Support CDO

Tyler Durden's picture

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Deadpool's picture

the raters have always been glorified weather men. it's a farce.

slaughterer's picture

Does France have an inside man at S&P?  I do not understand how the USA is AA+ while France stays AAA. 


Market will look at AAA long-term rating without reading the fine print: rally time. 

falak pema's picture

'cos France has 300 types of cheeses.....smile, and say "cheese"!

NotApplicable's picture

Farce? Do you have any idea how hard it is to maintain plausible deniability in the face of this disaster? Why, without them managing expectations the way they do, just think of the uncertainty that would displace the calm, yet irrational apathy we see today. They're doing God's work, I tell ya.  ;-)


Basically, they're saying "Governments, how the fuck do they work?"

jcaz's picture

So much for the objectivity of rating services-  they're now admitting themselves that they're just pimping the system.

Very nice.

NotApplicable's picture

Well, since there's truly no such thing as objectivity, it's better that the facade crumble, no?

Boilermaker's picture

It's somewhat possible that maybe they will potentially agree to it!


GeneMarchbanks's picture

Sarkozy will fuck this up. As a result of Berlusconi fucking up Italy. Then we'll see FrAA-nce.

Market Efficiency Romantic's picture

Oh yeah, he already seemed pretty worn out after those long debates. Bu to be serious, you know, why it is spelled Fr-A-nce, even AA overrates them once the death spiral confronts the gap between the aspiration and the illusion of being a world power.

fuu's picture

What did they find in those raided S&P offices?

gatorengineer's picture

I would guess coke residue and some slightly soiled hooker panties.....

gatorengineer's picture

I would guess coke residue and some slightly soiled hooker panties.....

LawsofPhysics's picture

Lower the rating on the Earth and just be done with it already.  Paper-pushing fucknuts.

Deadpool's picture

bet France wishes De Gaul got their gold back from Nixon even more now.

SheepDog-One's picture

Theyre now micromanaging so hard they had to release this 'news' just as the DOW was down -40...immediately back up to green again, job well done.

vegas's picture

The only thing you can count on the French for is surrender; they have always been pretty good at it.

Tsar Pointless's picture

You mean kinda like the majority of Americans have surrendered to their debt masters?

I guess we won the wars, but lost the battle.

Usually it's the other way around.

At least we're unique in that respect.

vegas's picture

Nobody in the world can beat Amerikans when it comes to taking on debt they can't repay. Problem is, the world continues to lend the dolts the money. Go figure.

LawsofPhysics's picture

Actually, many foreigners have stopped lending the U.S. money and stopped buying treasuries and bonds.  Problem is, Ben has a printing press.  Time to negociate with China for just how much the reserve currency is worth to them.  Call their bluff, they don't want it and why would they when oil-producing countries are already taking other currancies for oil anyway.

Tortfeasor's picture

UPDATE: From this date forward, the rating of 'AAA' is no longer in use.  The highest rating given by any rating agency shall be 'AA+', and all other ratings shall be adjusted upwards accordingly.

Schmuck Raker's picture

"In general, we expect the outlook on EFSF's issuer credit rating to reflect the outlook..."what could possibly go wrong?

gwar5's picture

No problemo. The TBTF can always force out the top guy at the agencies and get somebody who will get it right.  The NWO is at stake dontcha know.

disabledvet's picture

This reminds of the scene in the movie Fletch where he's reporting on police corruption...the police come, throw him in jail, the chief of police comes down, points a gun at his head and Fletch says "thank God! The police!" the rest of the story is fairly straightforward.

Amish Hacker's picture

"member governments would provide timely and sufficient extraordinary support"

These clowns are leaving the landing lights on for Amelia Earhart.

oogs66's picture

so the Eurobonds wouldn't be AAA :D

lolmao500's picture

So they won't downgrade France tonight? Awwwwww.

Belarus's picture

No, at best S + P hs said France won't be under review until end of year. 

Belarus's picture

"In our opinion, there is an "almost certain" likelihood that the EFSF's 'AAA' rated member governments would provide timely and sufficient extraordinary support to the EFSF if needed." 

So, they are saying Germany will go all in after witnessing the money-pit that Greece has been and will continue to be....just as Italy and Spain are joining the Greek ranks? 

At any rate, this is exactly why stocks will rally into the year-end. No one in the world believes that assets won't be saved at any and all costs...along with the EURO, etc. 

And intermidate and long-term they would be right, even if Germany and France leave the EURO, about assets being saved at any and all costs--there is no reason to ever fear real assets like silver, oil, agricultrual, and even banks for that matter. There is no reason to short anything anymore.....all collasping debts will merely be pushed up against with ongoing and endless central bank printing until objective is achieved (which eventually is runaway inflation impossible to stabilze without setting off the next great depression). Even a failed bond auction just means more money printing. 

It's no wonder why the QE trade has been well underway....because it doesn't matter when it happens again, it just simply will at some point. And that is all that matters when world-wide cash flows don't and can't support world-wide debts. China will continue easy money, the U.S., etc. depsite whatever clusterfuck happens in Europe. The only thing Europe might achieve is a better entry point into solid assets.


reload's picture

I am almost certain I posted the cheque,

I am almost certain I will not come in your mouth.

trampstamp's picture

Let's see what Moody's says. They may not see it this way.

lolmao500's picture

That how you freaking protest. That's how you show who's a slave and who's not.

Veterans with AR15s protecting Occupy Phoenix


Caviar Emptor's picture

Amidst our 'consumer renaissance': Whirlpool announces laying off 5,000, most since 08. 


Caviar Emptor's picture

Amidst austerity for the 99%, prosperity for the 1%:


Italian govenment buys 19 Maserati supercars despite austerity cuts


Italy may be in the midst of a savage austerity drive but that has not stopped defence ministry officials ordering a fleet of armoured Maseratis to ferry themselves around Rome.



Schmuck Raker's picture

That's Stimulus. And that's beneficial for your lawn.

Market Efficiency Romantic's picture

Google pictures of Italian Lamborghini police cars. No, not kidding, seriously, they only want to make sure they capture escaping sports cars such as politicians in their government-leased Maserati.

Manthong's picture

Likely probability of assumptions based on the possibility of projections regarding plans for future conditionalities and optimistic assessments.. for sure.

Caviar Emptor's picture

I knew things were about to start changing fast, but this is ridiculous: 

It's a Girl! British royal succession rules to change



NotApplicable's picture

Once a Catholic heads the Church of England, I'd say that after nearly 500 years, the Counter-Reformation will be complete.

*goes for popcorn*

LawsofPhysics's picture

Well I don't think I would enter into a contract with anyone who was "almost certain" they would pay for my services.  Bye bye paper.

machineh's picture

'As 62% of the €780 billion in guarantee commitments is from 'AAA' rated sovereigns, we expect that the EFSF can borrow up to €452 billion without putting downward pressure on its 'AAA' rating.'

Implicitly, S&P assumes that €452 billion of EFSF debt issuance has no effect on the AAA guarantors. Is that realistic?

This enormous volume of supply is likely to raise borrowing costs for all European sovereigns, including the AAA ones. Higher borrowing costs add to fiscal deficits and accelerate the rise in debt-to-GDP ratios.

How can S&P's static model ignore this rather direct dynamic linkage? Something is wrong with this picture!

Epicurus's picture

In case you haven't picked this up yet. Here's the link to an explanation on the EFSF (Q&A format).



YesWeKahn's picture

They didn't say "outlook positive", it's pretty positive.

slewie the pi-rat's picture

case study in how ratings agencies and the banksters who (wink-wink) are subject to their ratings under (wink-wink) generally acceptepted accounting rules build CONFIDENCE in their wunnerful, wunnerful TBTF pyramides du papier

if someone from S&P were pitching this to me, i would think throughout the presentation:  even this doucebag wouldn't touch this festering mess of criminality and fraud with a 10-ft. pole! 

see you in oakland, BiCheZ!  goooooo raiderz!


slaughterer's picture

Every fucking dip will be bought from now till EUR/USD 1.50 Christmas. 

Mr_Wonderful's picture

Fitch says acceptance of 50% haircuts on Greek debt would constitute default. Bloomberg reports