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Euro Crisis Hottin Up - France To Lose Aaa Rating

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http://www.bloomberg.com/news/2010-12-20/france-s-aaa-grade-at-risk-as-rating-downgrades-sweep-europe-euro-credit.html

Please do it, just to see Sarko explode when he expounds "Ze markets do not understand ze Fraaaaaaannnnnnncccccccee economy. We has unlimited fromage et posh vin to back our currency, better than gold because you can eat this. Ne cest pas."

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http://www.bloomberg.com/news/2010-12-20/france-s-aaa-grade-at-risk-as-rating-downgrades-sweep-europe-euro-credit.html

Please do it, just to see Sarko explode when he expounds "Ze markets do not understand ze Fraaaaaaannnnnnncccccccee economy. We has unlimited fromage et posh vin to back our currency, better than gold because you can eat this. Ne cest pas."

It makes sense. Look at their total debt:

Bank for International Settlements (BIS) report.

UK Total Debt (Gov.+ Households + Companies) / GDP still going up.

(IMO only partially explained by the UK GDP reduction of around 5% since the crisis IIRC.)

First solid data that I am aware of since the McKinsey report showed total debts up to 2008. This BIS report comes all the way to 2010.

Thread in the forum main section: http://www.housepricecrash.co.uk/forum/index.php?showtopic=153952&view=findpost&p=2771813

Source: http://www.bis.org/publ/qtrpdf/r_qt1009e.pdf

debttogdp2010.png

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I hear France is in a much worst state than anyone truly realises.

And apparently house prices went up 8% over there also during 2010.

Nobody does the veneer of financial acumen like the french do they its admirable but at the moment they believe their own ********, they dont save money and have cheap housing/savings like the germans, nor have they made any real cuts.

House prices in France are high also in any place you want to be for work, just as unaffordable and no doubt their has been some lovely corruption and handouts to large companies to protect them from competition also.

I know a lot of folks who work in France and the consensus is that it is not great and getting worse with a huge immigrant problem (thats coming from immigrants).

Maybe France will be the 'unexpected' domino in Europe.

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The counterargument is that they went through a significant fiscal consolidation in the late 1990s alongside Germany, Spain and others, so they're used to it and have done it, more used to it than some of their other "European" counterparts, say the UK, which hasn't actually managed a fiscal consolidation since post-War. The Euro will get caned though, just as it did in the late 90s

Maybe France will be the 'unexpected' domino in Europe.

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I hear France is in a much worst state than anyone truly realises.

Oh much worse indeed. A french banker told me in 2007 that he feared a meltdown since all of Frances income tax was needed to service their interest on national debt. They ae wily at covering it up and have played ball with Greece and others, but the fact is their banks are in danger from the massive sums leant to other Euro economies.

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And apparently house prices went up 8% over there also during 2010.

Nobody does the veneer of financial acumen like the french do they its admirable but at the moment they believe their own ********, they dont save money and have cheap housing/savings like the germans, nor have they made any real cuts.

House prices in France are high also in any place you want to be for work, just as unaffordable and no doubt their has been some lovely corruption and handouts to large companies to protect them from competition also.

I know a lot of folks who work in France and the consensus is that it is not great and getting worse with a huge immigrant problem (thats coming from immigrants).

Maybe France will be the 'unexpected' domino in Europe.

Cheap housing and high house prices in France eh.

We must have high, high house prices in the UK biggrin.gif

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http://www.bloomberg.com/news/2010-12-20/france-s-aaa-grade-at-risk-as-rating-downgrades-sweep-europe-euro-credit.html

Please do it, just to see Sarko explode when he expounds "Ze markets do not understand ze Fraaaaaaannnnnnncccccccee economy. We has unlimited fromage et posh vin to back our currency, better than gold because you can eat this. Ne cest pas."

It strikes me that as the Eurozone countries are showing signs of wobbling in terms of continuing to bail out their banks and then, in turn, their sovereign states due to growing civil unrest and also that Euro governments are just beginning to make plausable threats to curb the power of the banking system (as a possible sop to the people in response to the above), that it is more than mere coincidence that a number of them are suddenly beginning to get their ratings downgraded. Things were just as bad 6 months ago, but apparently everything was tickety-boo on the ratings-front back then. 6 Months ago European governments were gung-ho for taxpayer funded bailouts. They probably still are but, as I said, are wobbling in the face of popular dissent.

In leiu of the above, the questions I want answers to are:

(1) Who stands to gain the most from taxpayer-funded bailouts of the banks and sovereign-states and, by implication, who stands to lose the most if those taxpayer-funded bailouts falter?

(2) Who funds the rating agencies?

(3) Are the answers to (1) and (2) in any way connected?

Edited by tallguy

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They contained the problem magnificently with Ireland.

Please stop with the sarcasm.

The problem is contained.

All the bankrupt countries are contained within the EU.

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"In leiu of the above, the questions I want answers to are ...."

I'm guessing here but I think the bankers stand to gain the most and the people stand to lose the most if the banks or the government's go bankrupt. If the banks and the governments go bust no one is gonna get paid, not even the bankers.

If they go bust, we all go bust and while it may be a source of some solace that the bankers aren't getting paid either, I would have thought there were better ways of getting these guys for their breach of their fiduciary duties than bankrupting ourselves.

The ratings agencies, as commercial entities, traded on the stock exchanges of New York and Paris (ho ho, I know that's a giggle, it's Fitch) and are probably funded by their clients ..... errr ..... who are probably bankers ...... who use the agencies to argue they didn't breach any fiduciary duty when they lost all the money.

Connection .... ho ho

This has a few hundred views on you tube,

And unless I'm mistaken, this has more than 300 million views on you tube,

Edited by indirectapproach

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And apparently house prices went up 8% over there also during 2010.

Nobody does the veneer of financial acumen like the french do they its admirable but at the moment they believe their own ********, they dont save money and have cheap housing/savings like the germans, nor have they made any real cuts.

House prices in France are high also in any place you want to be for work, just as unaffordable and no doubt their has been some lovely corruption and handouts to large companies to protect them from competition also.

I know a lot of folks who work in France and the consensus is that it is not great and getting worse with a huge immigrant problem (thats coming from immigrants).

Maybe France will be the 'unexpected' domino in Europe.

Know someone who moved there in October. They arrived on the Wednesday and had been mugged by a North African immigrant two days later. The nearest city to where they live (Montpelier) is overwhelmed by aggressive immigrant beggars from North Africa such that he no longer allows his wife to travel into town by herself. Living the dream!

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Know someone who moved there in October. They arrived on the Wednesday and had been mugged by a North African immigrant two days later. The nearest city to where they live (Montpelier) is overwhelmed by aggressive immigrant beggars from North Africa such that he no longer allows his wife to travel into town by herself. Living the dream!

This pretty much marries up with what many Tunisian workers say when they come back in in the summer. One older chap who works in Marseille was saying how he laments not seeing so many pretty girls walking about as they get abuse from the increasingly extreme lads there. Tales of muggings etc are rife phones being the favourite reason they complain about racism but empathise with the French people as its just got out of hand. Not all immigrants want a takeover of a place I would say they come for the life that the locals created (since freedom of speech and lifestyle are novelties) and are just as despondent as they when they find the place full of the nasties they tried to escape from back home.

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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