Fitch Goes On Rampage: Cuts Spain, Italy, Belgium
January 27, 2012
Fitch just cut the long-term issuer ratings of 5 EU countries:
Belgium: AA+ to AA
Spain: AA- to A
Italy: A+ to A-
Cyprus: BBB to BBB-
Slovenia: AA- to A
It affirmed Ireland’s BBB+ rating with a negative outlook.
Borrowing costs have been sinking for these countries lately–particularly for Italy and Spain—after the European Central Bank announced liquidity support measures in early December that have lessened mounting worries about the health of the banking system.
While Fitch says that it supports EU leaders’ actions to address the crisis so far, a lot more has to happen before these countries are out of trouble:
In Fitch’s opinion, the eurozone crisis will only be resolved as and when there is broad economic recovery. It is evident that further substantial reforms of the governance of the eurozone will be required to secure economic and financial stability, including greater fiscal integration.
Overall, today’s rating actions balance the marked deterioration in the economic outlook with both the substantive policy initiatives at the national level to address macro-financial and fiscal imbalances, and the initial success of the ECB’s three-year Long-Term Refinancing Operation in easing near-term sovereign and bank funding pressures. Nonetheless, the intensification of the eurozone crisis in the latter half of last year undermined the effectiveness of ECB monetary policy and highlighted the financing risks faced by eurozone sovereign governments in the absence of a credible financial firewall against contagion and self-fulfilling liquidity crises.
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Fitch shouldn’t of only cut the rating of the European counties but also the United State to about D rating. There is no gold in Fort Knonx, just paper with nothing behind it.
AMERICA GIVES THE UNITED NATIONS BILLIONS OF DOLLARS EVERY YEAR AND KEEPS US IN DEBT. THE UNITED NATIONS NEVER HAS TO ACCOUNT FOR HOW ALL THESE BILLIONS ARE SPENT. Clue!
Over 35 Pounds of Cocaine Sent to United Nations Headquarters …
The NYPD is launching an investigation to determine who seems to have accidentally shipped 35 pounds (16 kilos) of cocaine to the United Nations.
http://www.complex.com/city-guide/2012/01/over-35-pounds-of... – Cached
Cocaine Sent to U.N. Headquarters
Photo by Monika Graff/Getty Images. Here’s a bizarre one: Someone sent more than 35 pounds of cocaine to the United Nations headquarters in New York …
Slatest.slate.com/posts/2012/…cocaine_package_found.HTML – Cached
35 Lbs of Cocaine Mailed to UN Headquarters | NowPublic News …
Sunami is caming…..
2006 gold was $440.00 per oz. Today it is $1650.00 pe oz.
1650 / 440 = %375 INFLATION [as measured in Gold]
I just wish S&P, Moody’s, Fitch, et. al. would just be direct in their language instead of using all the “$5″ financial words they do use. THEE reason they are all in trouble is that the costs of their social programs have come home to roost. That IS the reason for the mess they are in.
And to be fair so is the US. The explosion of the programs started back in the 60′s coupled with what Obama has done will come home to roost as well. Also the unfunded pension/benefits plans of government/unionized labor are already coming home to roost. Why do you think so many companies opt for Chapter 11 Bankruptcy? Because of the things the Court can do is literally toss the whole contact and obligations to employees.
I hate to say it but it seems for the last few years as the EU goes so goes the US. It didn’t use to be that way.