Monday, December 5, 2011

AAA’s will get dragged down by the PIGS

Debt crisis: all 17 eurozone countries face losing AAA credit status

S&P warns that all 17 eurozone members, including France and Germany, could lose their AAA ratings as they attempt to share the same fiscal straight jacket.

Posted by enuii @ 10:48 PM (1799 views)
Please complete the required fields.



8 thoughts on “AAA’s will get dragged down by the PIGS

  • general congreve says:

    Whatever. Fed up with it now. It’s taking forever for those Euro debt monkeys to start off the global financial collapse.

    Markets: “This looks bad, you’re for it now!”

    Eurozone: “No, no, everything will be fine after this next meeting. Just one more meeting that’s all it’ll take. In the meantime some central banks will buy a bit more debt and print a bit more paper to cover up the massive obvious f4cking cracks in this facade of a currency.”

    Markets: “Oh, right, no problem after all then, that’s great, we’ll get a rally quick sharp.”

    Reply
    Please complete the required fields.



  • When you get into bed with PIIGS, don’t be suprised to find yourself covered in s**t when you wake up in the morning…

    Reply
    Please complete the required fields.



  • makes the uk look like a safe haven

    Reply
    Please complete the required fields.



  • GC, I think you are being inpatient.

    Going on the current speed of decline I reckon on another 7 years before it all falls apart. By then the US is really going to be in shit creek, along with the UK. The Eurozone issues will look small compared to them.

    Reply
    Please complete the required fields.



  • @2 Far from it. The UK may not be in EMU, but it’s inextricably bound to all things EU – with resulting consequences.

    Re: S&P’s statement. Here in full:-

    FRANKFURT (Standard & Poor’s) Dec. 5, 2011–Standard & Poor’s Ratings Services today placed its long-term sovereign ratings on 15 members of the European Economic and Monetary Union (EMU or eurozone) on CreditWatch with negative implications.

    We have also maintained the CreditWatch negative status of our long-term rating on Cyprus and placed its short-term ratings on CreditWatch with negative implications. The ratings on Greece have not been placed on CreditWatch. The ratings on the eurozone sovereigns are listed below.

    Today’s CreditWatch placements are prompted by our belief that systemic stresses in the eurozone have risen in recent weeks to the extent that they now put downward pressure on the credit standing of the eurozone as a whole.

    We believe that these systemic stresses stem from five interrelated factors:

    (1) Tightening credit conditions across the eurozone;

    (2) Markedly higher risk premiums on a growing number of eurozone sovereigns, including some that are currently rated ‘AAA’;

    (3) Continuing disagreements among European policy makers on how to tackle the immediate market confidence crisis and, longer term, how to ensure greater economic, financial, and fiscal convergence among eurozone members;

    (4) High levels of government and household indebtedness across a large area of the eurozone; and

    (5) The rising risk of economic recession in the eurozone as a whole in 2012. Currently, we expect output to decline next year in countries such as Spain, Portugal and Greece, but we now assign a 40% probability of a fall in output for the eurozone as a whole.

    Our CreditWatch review of eurozone sovereign ratings will focus on three of the five key factors that form the core of our sovereign ratings methodology: the “political,” “external,” and “monetary” scores we assign to the governments in the eurozone (see “Sovereign Government Rating Methodology And Assumptions”, published June 30, 2011). Our analysis of “political dynamics” will focus on both country-specific and eurozone-wide issues that appear to us to be limiting the effectiveness of efforts to resolve the market confidence crisis. Our analysis of “external liquidity” will focus on the borrowing requirements of both eurozone governments and banks. Our analysis of “monetary flexibility” will focus on ECB policy settings to address the economic and financial stresses the countries in the eurozone are increasingly facing.

    We expect to conclude our review of eurozone sovereign ratings as soon as possible following the EU summit scheduled for Dec. 8 and 9, 2011. Depending on the score changes, if any, that our rating committees agree are appropriate for each sovereign, we believe that ratings could be lowered by up to one notch for Austria, Belgium, Finland, Germany, Netherlands, and Luxembourg, and by up to two notches for the other governments.

    Our ratings on Greece (Hellenic Republic; CC/Negative/C) are not affected by today’s actions, as a ‘CC’ rating under our rating definitions connotes our belief that there is a relatively high near-term probability of default.

    We are publishing separate media releases with the rationale for each rating action on the 16 CreditWatch actions. We are also publishing the following article: “Credit FAQ: Factors Behind Our Placement of Eurozone Governments on CreditWatch”.

    Following today’s CreditWatch listings, Standard & Poor’s will issue separate media releases concerning affected ratings on the funds, government-related entities, financial institutions, insurance companies, public finance, and structured finance sectors in due course.

    Reply
    Please complete the required fields.



  • It’s like a crack addict getting his next hit. It’s good while it lasts, but they eventually end up dead. The central banks are debt junkies and will end up the same way.

    Promises being made this week in Europe to ‘stick together’ and ‘never let it happen again’ are for the future, they will not make the bad debt that still exists today go away. Default is the only way.

    Reply
    Please complete the required fields.



  • general congreve says:

    @3 – 7 years?!?! This is what I mean Khards! I’ll have to go back to work next year, not due to a lack of solvency, but due to a lack of cash liquidity for day to day living expenses, as most my savings are tied up in leading performing assets (I think we all know what these are), that I would be crazy to liquidate at this stage.

    So, can’t they just get the f4ck on with it and boost my investments to the moon now FFS?!?!

    Me and work have a bad relationship, and I just want to be able to sit back, laugh a lot about being right as I count the loot and then do what ever the f4ck I want with my life (within reason – hopefully I’ll have just enough to have a modest easy life if I manage my winnings carefully) without work getting in the way and preferably all before I am bloody 40!

    Stalling [email protected]

    Reply
    Please complete the required fields.



  • general congreve says:

    @3 – 7 years?!?! This is what I mean Khards! I’ll have to go back to work next year, not due to a lack of solvency, but due to a lack of cash liquidity for day to day living expenses, as most my savings are tied up in leading performing assets (I think we all know what these are), that I would be crazy to liquidate at this stage.

    So, can’t they just get the f4ck on with it and boost my investments to the moon now FFS?!?!

    Me and work have a bad relationship, and I just want to be able to sit back, laugh a lot about being right as I count the loot and then do what ever the f4ck I want with my life (within reason – hopefully I’ll have just enough to have a modest easy life if I manage my winnings carefully) without work getting in the way and preferably all before I am bloody 40!

    Stalling [email protected]

    Note: What is wrong with HPC?! Is HPC the subject of a DoS Attack or something? Perhaps the CML are out to shut us down or something?!

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>