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Spanish Stocks Plunge Most In 12 Months As Egan-Jones Cuts Spain To CCC+
With IBEX down 6%, 10Y yields over 7.30%, 10Y spread over 610bps, and EURJPY at 12 year lows; the hits just keep coming. From Ega-Jones:
Slipping - Spain's 10 year debt is now yielding 7.18%, which is a reflection of the weakening of the economy and the credit quality of Spain. In addition to the expected austerity riots, the latest news is that Valencia and other regions will need $15B of aid, the sen. debtholders of the weak banks will be forced to take losses, and there might be some sharing of losses among all banks. An estimated decline in GDP of 1.7% (per the Economy Ministry), the 25% unemployment, the IIF's recent estimate of addl bank loan losses up to EUR260B, and possible depositor withdrawals hurt. From 2008 to 2011, Spain's debt mushroomed from EUR436B to EUR735B while its GDP declined from EUR1.09T to EUR1.07T. Social benefits are a major problem; while pmts to the govt have been more or less flat over the past four years (up EUR 3B), payments from the government have been up EUR 45B. As a result, Spain is short about EUR50B per year for social payments, EUR20B per year for interest, and an additional EUR 20B for asset growth; hence the EUR90B per annum increase in debt.
Spain will inevitably be faced with addl pmts to support a portion its banking sector and for its weaker provinces. Assets of Spain's largest two banks exceed its GDP. We are slipping our rating to "CC+"; watch for more requests for support from the banks and money creation.
via Bloomberg.
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Sounds like junk status to me.
7.3, I mean hot dang!
Elevator going down, next stop default..
Will the PPT Team report to Chairman Bernancke's office immediately!!!!
Recent announcements strongly hint that Spain is ready to start lying in an even bigger way about asset values.
And it appears that Egan-Jones is calling them on it.
Good stuff.
All the Tea Party's fault.
Just like ABC News (cough) seems to be suggesting about Denver
(sigh)
Just ever so fucked up.......
Yes sir! We will go green sir! QE rumor #157 forthcoming! Sir!
Yes, as soon as were done our morning porno fix, right away!
On the post-imperialism scale you are right, Spain is
a long spent force, "Euro-resurrection" non withstanding.
Money elevator still in full working order, some manure
from some chicken island to last us fertilizing for another hundred years, fully leveraged an estimated seven thousand... Get it- they are fighting, non-impressionable
on their last stand, for chicken pick.
Just what is the diff between CC+ and CCC+ ??
Ratings are a fail.. Should be binary.. You're either "A" or "F"
C++ is one ply toilet paper, C+++ is two ply
Let me reassure you.
One ply or two ply, your fingers still go through ;o)
7.3% yield!
Time to back up the truck and load up on them suckers :O)
Big time, big time. Spain can't keep it under 7% and they won't be able too.
A poster here named "RobotTrader" said the IBEX was a good buy!!!
I put my life savings in the IBEX and lost 6% today.
WAS I LIED TO????????????????
Man I hope you are joking. RoboT is a troll!
he also said CMG was a great buy, down 23% right now
he is an awesome counter-indicator
Damn dude...that was supposed to be a hindsight trade! What have you done??
yes
RobotTrader is aspiring to claim some Goldman muppets but doessn't realize he is a muppet.
Egan keeps pumping out the hits. On ya boys.
20-year TIPS negative yield today:
http://www.bloomberg.com/markets/rates-bonds/government-bonds/us/
wow...that's some crazy shit...30 year not far behind
nvm
Ruh-Roh,
Now that the the .gub has taken oversight on these agencies, all will be well.
You will never see another honest one again.
Why was the downgrade delayed, until the bailout funds were approved? Just sayin. at least Egan Jones, had the marbles enough to do it!
bet there's a long-haired tourist looking for that Egan guy ...
Very hot day here in Barcelona.. Looking forward to an ice cold beer down at the beach. At least we still have our beaches.. I think.
I heard the beaches were pledged to the ECB for a bailout loan. Go long loan shark repellant.
That beach has been renamed Hamburg South by it's new owner
Just BTFD. LMAO!
I rate 'em F minus.
stocks plunging, yields soaring, unemployment over 20%, demonstrations in the streets. Spain better dump its govt AND the euro or it's toast.
yes, could not agree more.
The same should be said for a number of European [currently nominally] sovereign states, as well as a number of US [formerly sovereign] states.
It takes months to build up pressure against the state houses and MSM to generate action ... whereas it takes only weeks or days for a country (or Lehman) to go from "it's all under control" to 'tits up'!!!
Yield spikes in Spain, and in Greece and Italy. Depression is becoming a reality.
http://confoundedinterest.wordpress.com/2012/07/20/approaching-the-zero-...
and the VIX selling continues.
How does a country that is borrowing money to pay its debt have a rating at all? This goes for the US who is monetizing its debt by printed money as well. This idea that they are worthy of a credit rating above default is ridiculous.
just finished watching Tour de France... new french president was there...
british stage winner, british yellow jersey... while shaking hands, french prez asks for his 75%...
Someone better step on gold soon, just went green.
There we go.
Oops spoke too soon again.
define "plunge."
About time. They are junk.
Check out the Italian index - down 4.5% today.
There is red everywhere today - the EU close boost never came on Friday - they couldn't keepit up all week!
WHERE ARE THE MUPPETS TO SUPPORT A RALLY?
Alas poor Muppet,I knew him well.
He sold it all ,before it went to hell.
CHORUS
Spanish and US banks need to release even more loan-loss provisioning revenue. There... it's all re-assessed.
got a woody seeing HVU.to up 950 percent today, but then i realized it was just a share consolidation dam you VIX lol
Equities have to be whacked down far more to regain control of yields imho
Peseta time!
You say CCC+ I see it as Si' Si' Si"! Just a matter of perception.
Egan Jones is a bussy little bee. Downgrading everyone.
They must hold large short positions.
Spain's capital outflows increase at an accelerated pace-forcing downward pressure on target 2 liabilities--ugly
http://bit.ly/QgJSXs
Ha Ha Ha - love this comment:
*SPAIN BAD BANK TO APPLY `REAL LONG-TERM' ECONOMIC VALUATIONS
That means mark to fantasy is back in business baby!
The average home in Spain is worth 200,00 and has a loan of 300,000. But good News!!
The real long-term economic valuation of all properties is close to 1,000,000 EACH! That means all banks are on solid footing and Spain is now AAA rated.
Paging....Mr. Mario Draghi....Paging......Mr Mario Draghi......Please announce date for yet another summit and report to the next summit location IMMEDIATELY!
downspike?
http://expose2.wordpress.com/2011/11/20/a-voice-from-the-dark/
It is really great that the last mid-June summit (the 20th in 2 years) fixed Spain (and Italy), or the EMU would be in BIG trouble. Now there is a plan and mechanisms in place to get Spain through this temporary liquidity problem.
Oh, wait...
And where are those posts from those saying government spending isn't the problem in Spain? No of course it was just RE, despite the fact the government endorsed overvalued RE for tax revenue purposes (so that government could spend).
Indebted Valencia asks Spain government for help, markets jolted
Valencia, Spain's most indebted region alongside its northern neighbor Catalonia, sought help under an 18-billion-euros ($22.1 billion) program passed on Thursday and aimed at helping the autonomous regions which, together with local authorities, account for around half of all public spending.
http://news.yahoo.com/eurogroup-approve-spanish-banking-sector-bailout-0...
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In so many examples, when investigating the problem, look to the solution. It is often that the solution comes fromt the ones causing the problem in the first place - government.
This must be NEW news ... hmmmmmmmmmmm
goddamn math, ruinning a perfectly good time....
Egan Jones management committee and board of directors will quickly move from a federal lawsuit to Guantanamo.
The Spanian need 700B to recapitalize the banks, the European barely agree to 100B, it is like fighting a flood with a finger.