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

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Wed, 12/07/2011 - 15:54 | 1955794 SheepDog-One
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Remember equity markets are the kids with hockey helmets on playing with cat turds in the sandbox.

Wed, 12/07/2011 - 16:01 | 1955843 vast-dom
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 ;)

Wed, 12/07/2011 - 16:04 | 1955866 GeneMarchbanks
GeneMarchbanks's picture

You really love that word don'tcha?

Wed, 12/07/2011 - 16:24 | 1955938 vast-dom
vast-dom's picture

Gene that was special for you pal ;)

Wed, 12/07/2011 - 16:30 | 1955963 HoofHearted
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.

Wed, 12/07/2011 - 16:35 | 1955978 HD
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.

Wed, 12/07/2011 - 16:17 | 1955916 slaughterer
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Wed, 12/07/2011 - 16:25 | 1955941 pkea
pkea's picture

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

Wed, 12/07/2011 - 16:36 | 1955977 pkea
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?

Wed, 12/07/2011 - 16:44 | 1956028 pkea
pkea's picture

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

Wed, 12/07/2011 - 18:15 | 1956490 Ratscam
Ratscam's picture

just because they held hands yesterday?

Wed, 12/07/2011 - 18:36 | 1956556 undercover brother
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. 

Wed, 12/07/2011 - 16:45 | 1956029 Mr Lennon Hendrix
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.

Wed, 12/07/2011 - 15:48 | 1955796 HedgeAccordingly
HedgeAccordingly's picture

VIX hinting at something... http://hedge.ly/sh3Yl9

Wed, 12/07/2011 - 15:50 | 1955805 AllThatGlitters
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Gold has been hinting at something all day:  http://www.oilbull.com/gold-price/

Wed, 12/07/2011 - 15:49 | 1955797 EscapeKey
EscapeKey's picture

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

Wed, 12/07/2011 - 16:27 | 1955952 Yikes
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!  

Wed, 12/07/2011 - 17:18 | 1956276 Votewithabullet
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Never let a doughnut go to yer waist I think is what he said.

Wed, 12/07/2011 - 15:49 | 1955798 Caviar Emptor
Caviar Emptor's picture

"You cut me? I demand satisfaction!"

Wed, 12/07/2011 - 15:54 | 1955818 Sophist Economicus
Sophist Economicus's picture

Shall we say 'Pistols at dawn'?

Wed, 12/07/2011 - 17:49 | 1956394 OpenEyes
OpenEyes's picture

AA is the new AAA

Wed, 12/07/2011 - 15:49 | 1955800 The Axe
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!!!!

Wed, 12/07/2011 - 15:53 | 1955813 slaughterer
slaughterer's picture

About time.   Long overdue.  

Wed, 12/07/2011 - 15:53 | 1955815 Nothing To See Here
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.

Wed, 12/07/2011 - 15:55 | 1955816 SloMoe
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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?

Wed, 12/07/2011 - 15:57 | 1955825 Sophist Economicus
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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?

Wed, 12/07/2011 - 16:00 | 1955841 Randall Cabot
Randall Cabot's picture

It's all very clear now, thank you.

Wed, 12/07/2011 - 16:02 | 1955851 chunkylover42
chunkylover42's picture

I think I got it.

Europe is on double secret probation?

Wed, 12/07/2011 - 16:16 | 1955910 Shitters_Full
Shitters_Full's picture

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

Wed, 12/07/2011 - 16:04 | 1955864 EscapeKey
EscapeKey's picture

Couldn't they just collect Shrute bucks instead?

Wed, 12/07/2011 - 21:10 | 1955908 macholatte
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 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!
Wed, 12/07/2011 - 16:33 | 1955974 francis_the_won...
francis_the_wonder_hamster's picture

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

Wed, 12/07/2011 - 15:54 | 1955819 tim73
tim73's picture

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

Wed, 12/07/2011 - 15:55 | 1955821 pods
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.


Wed, 12/07/2011 - 15:55 | 1955822 billhilly
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.

Wed, 12/07/2011 - 15:57 | 1955823 Everybodys All ...
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.

Wed, 12/07/2011 - 16:19 | 1955920 EscapeKey
EscapeKey's picture

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

Wed, 12/07/2011 - 16:33 | 1955968 Everybodys All ...
Everybodys All American's picture

Capitalism run by socialist(s) is not capitalism.

Wed, 12/07/2011 - 15:55 | 1955824 Shleprock
Shleprock's picture

Certainly this calls for QE3!

Wed, 12/07/2011 - 16:16 | 1955885 pkea
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.

Wed, 12/07/2011 - 15:56 | 1955827 Xkwisetly Paneful
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.

Wed, 12/07/2011 - 15:59 | 1955832 Martial
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!

Wed, 12/07/2011 - 16:03 | 1955857 stop.snitching
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....

Wed, 12/07/2011 - 16:18 | 1955918 MarkTwain00
MarkTwain00's picture

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

Wed, 12/07/2011 - 16:47 | 1956067 stop.snitching
stop.snitching's picture

Boy I hope you're right

Wed, 12/07/2011 - 16:24 | 1955936 SheepDog-One
SheepDog-One's picture

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

Wed, 12/07/2011 - 15:58 | 1955833 lolmao500
lolmao500's picture

And there goes the dynamite!

Wed, 12/07/2011 - 15:58 | 1955835 youngman
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.....

Wed, 12/07/2011 - 16:00 | 1955844 KandiRaverHipster
KandiRaverHipster's picture

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

Wed, 12/07/2011 - 16:01 | 1955845 a growing concern
a growing concern's picture

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

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