S&P Warns It May Cut Most European Banks, European Union Itself

Tyler Durden's picture

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
SheepDog-One's picture

Remember equity markets are the kids with hockey helmets on playing with cat turds in the sandbox.

vast-dom's picture

And even these newest round of "cuts", which are essentially leveraging great quasi QE infusions, are essentially more than generous. It's like the insurance company finally writing off the house that burnt down months ago as a total loss. It's too little too late, and the interest and oppurtunity cost has set in that much worse. Oh well, at least we're acknowledging that there's some smoke on that there horizon......in cahoots ;)

GeneMarchbanks's picture

You really love that word don'tcha?

vast-dom's picture

Gene that was special for you pal ;)

HoofHearted's picture

About....fucking.....time. They'll never catch up to Egan Jones, but at least they are doing something. Dude, that emperor guy is completely naked. And is it cold outside, because...oh nevermind.

HD's picture

S&P is being used as a tool to scare EU members into falling into line - it's just too little, too late.

slaughterer's picture


pkea's picture

I admire merkel's resistance to the pressure. why don't S$P just plainly downgrade the world 

pkea's picture

They really want that 1267 level. so what happening in the last 15 minutes tells like nothing else who is in charge. It is officially a totalitarian regime.


What black swan event, which the EZ obviously isn't, can bring any change to this status quo?

pkea's picture

Here it comes 1267 some random 14+ points on S&P in 10 minutes

Ratscam's picture

just because they held hands yesterday?

undercover brother's picture

for god's sake, make the damn cuts already and stop warning.  just cut them if they deserve to be cut and move on to the next. 

Mr Lennon Hendrix's picture

Remember equity markets are the kids with hockey helmets on playing with cat turds in the sandbox.

And the bond markets are where the kids without helmets throw rocks at each other.

EscapeKey's picture

The solution to this is clearly more central planning. Because government bureaucrats always know what's best for us.

Yikes's picture

Never let a crisis go to waist.  Isn't that the mantra of TurboTax Tim's boss.   


How ironic (i.e. tragic) it would be that America iwould help Germany, frickn Germany, disolve Democracy in Europe!  

Votewithabullet's picture

Never let a doughnut go to yer waist I think is what he said.

Caviar Emptor's picture

"You cut me? I demand satisfaction!"

The Axe's picture

Market is broken....who cares..though my shorts on corn and natural gas are doing well..However my shorts on CF is giving me GAS!!!!

slaughterer's picture

About time.   Long overdue.  

Nothing To See Here's picture

If the market was still 'normal' and had regular participants like you and me, it would not be surprised. But the bulk of the market activity now consists of central banks, banks, government insiders and large pension funds who know no better than what their failed mathematical models tell them. They will be the most obvious deers in the headlight when it all crashes, save for the few pupeteers among them.

SloMoe's picture

I guess I'm slower than I thought, didn't S&P just essentially downgrade most of Europe? Can't they get it all done in one press release?

Sophist Economicus's picture

No No.   There were threats to threaten to downgrade.   Then the threats to threaten were reiterated.    That was follwed by a double-dare threat to threaten to downgrade.    This, of course, all lead to just a flat-out threat to threaten to downgrade -- which has now lead to just a plain threaten to downgrade.     Got it?

Randall Cabot's picture

It's all very clear now, thank you.

chunkylover42's picture

I think I got it.

Europe is on double secret probation?

Shitters_Full's picture

Put Neidermeyer on it.  He's a sneaky little shit just like you.

EscapeKey's picture

Couldn't they just collect Shrute bucks instead?

macholatte's picture


 Double Dog Dare

After a dare has been made and the daree has refused, the darer can then raise the stakes by double dog daring the daree, meaning that if the dare is carried out by the daree then the darer will also perform the task.


Flick: Are you kidding? Stick my tongue to that stupid pole? That's dumb!
Schwartz: That's 'cause you know it'll stick!
Flick: You're full of it!
Schwartz: Oh yeah?
Flick: Yeah!
Schwartz: Well I double-DOG-dare ya!
Ralphie as Adult: [narrating] NOW it was serious. A double-dog-dare. What else was there but a "triple dare you"? And then, the coup de grace of all dares, the sinister triple-dog-dare.
Schwartz: I TRIPLE-dog-dare ya!
Ralphie as Adult: [narrating] Schwartz created a slight breach of etiquette by skipping to the triple dare and going right for the throat!
francis_the_wonder_hamster's picture

Only this time, they mean it.  Really......

tim73's picture

Would somebody please put that wildly barking S&P rabid dog down for good!?

pods's picture

Why is it that the S&P is always the last to know?  

Everyone knows that Europe is saturated with debt.  As is most of the rest of the world.  

Strange how everyone loses their shit when the coroner pronounces a guy dead, yet everyone can clearly see a headless corpse before them.


billhilly's picture

This'll be good for a green close today I'll bet.  What a farkin joke this has all become.  Way back when the markets has a slight semblence of connection to reality/freedom this kind of news would have sent S+P down 80 points.  Today, nada.  I'd be LOL if I wasn't crying in my short beer.

Everybodys All American's picture

IMF asking for 120 billion from the US. When is this going to stop? Please who ever votes for this; can you simply ask yourself why a country with 1.5 trillion annual deficit is even considering bailing out the rest of the world.

EscapeKey's picture

It's clearly CAPITALISM'S fault that SOCIALIST POLICIES generate huge deficits.

Everybodys All American's picture

Capitalism run by socialist(s) is not capitalism.

Shleprock's picture

Certainly this calls for QE3!

pkea's picture

a non stop QE is in the works since 2008 with another tranche announcement coming shortly next tuesday. the question is when the market will develop immunity to the QE's. It is getting pretty close.

Xkwisetly Paneful's picture

The upgrades/downgrades have meant almost nothing in the historical meat of the distribution certainly next to nothing compared to the headlines.

Martial's picture

TD: S&P just called Europe's bluff... and Europe is holding 2-7 offsuit.


LOL! Man I hate when that happens!

stop.snitching's picture

They might be holding 2-7 offsuit, but since the game is rigged you know the flop will come 2-2-7....

MarkTwain00's picture

nope we have already seen the flop and the turn, just waiting on the river to put them down for good

SheepDog-One's picture

Too bad the S&P is only holding a pair of 2's itself.

lolmao500's picture

And there goes the dynamite!

youngman's picture

No news here...maybe if they FINALLY do it...but just more smoke in the room right now...I wonder what Greece thinks..or Portugal..lol....everyone is waiting for the big news on Friday...it can be three things...Nothing and the EU falls apart....or full on bailout....or announcement of another meeting in the future....I vote for the future...in the meantime....their economy is stopped as everyone waits...which makes it worse...and makes investors pull thier money out of the casino...and makes business´s hold back...all because the politicians spent way to much...they could have said no.....

KandiRaverHipster's picture

yes, because it makes sense to cut the ratings on both creditors and debtors.

a growing concern's picture

Come on, 7 on the river! Let's see a 7 on the river!