Flash: Moody's Cuts Spain 3 Notches in [Market-Ticker]

Posted 2012-06-13 16:45
by Karl Denninger
in International

Flash: Moody's Cuts Spain 3 Notches

Cut from A3 to Baa3, lowest investment grade, in one whack. That's a major move to make "all at once" and implies severe stress and a potential waterfall problem on the horizon.

Apparently they're not buying that it's "contained" any more than Egan-Jones is.

The real bad news? They used the phrase "sudden stop" in their analytical release. Those are two words that should never be seen together in discussion about credit access....

Discussion below (registration required to post)

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User Info	Flash: Moody's Cuts Spain 3 Notches in forum [Market-Ticker]
Drench Posts: 28631 Incept: 2009-11-10	2012-06-13 16:47:15 Permalink
Cbxer55 Posts: 70 Incept: 2009-07-01 Midwest City, OK	^^^Presumably a Spiderman towel!^^^ Some much for the Spailout! ;-) Half life of a few hours, and KABOOM! Last modified: 2012-06-13 16:48:37 by cbxer55 2012-06-13 16:47:25 Permalink
Frat Posts: 1935 Incept: 2009-07-15 NKY	Gen! More butter please! ---------- We're ***ed. Where's Henry Bowman when you need him? 2012-06-13 16:52:58 From PDA* Permalink
Avianphlu Posts: 3960 Incept: 2008-12-03 Ulster NY	how fast does this spread in todays HFT marketplace...tick tock 2012-06-13 16:56:18 Permalink
Jubber Posts: 14155 Incept: 2007-07-05 UK Online	Euro still up over 50 points? ---------- The problem with socialism is that, sooner or later, you run out of other peoples money. Thatcher 2012-06-13 16:57:19 Permalink
Buddy Posts: 157 Incept: 2008-10-25	From ZH: European Banks Preparing To Boycott Big Three Rating Agencies http://www.zerohedge.com/news/european-b.... 2012-06-13 17:02:39 From PDA Permalink
Flappingeagle Posts: 1229 Incept: 2011-04-14	From Spailout to Spanic in under a week. Spain's problems sure seem to be moving along much faster then Ireland's or Greece's problems did. I don't know if that is because the system is getting more stretched or, if it is becuase Spain is much larger and therefore harder to deal with. Maybe its both. It sure does look like we are in for a hot summer... Flap ---------- Here are my predictions for everyone to see: S&P 500 at 320, DOW at 2200, Gold $300/oz, and Corn $2/bu. "You can't build a house of cards on a shaking table." - Tony Johns The January 2015 AMZN put at $130 (cost $4.25) will be a winner. 2012-06-13 17:05:41 Permalink
Genesis Posts: 130779 Incept: 2007-06-26	Spain is too big to fix with simply handing them money. If that is attempted the entire EU will blow sky high and everyone knows it. ---------- I don't care* if it makes sense -- only if it makes money. -- Me* Bank (n): See scam, fraud and theft. *Eat a bankster -- they're low-carb.* *What part of "shall not be infringed" was unclear?* 2012-06-13 17:08:46 Permalink
Jubber Posts: 14155 Incept: 2007-07-05 UK Online	and Spanish futures moving firmer... ---------- The problem with socialism is that, sooner or later, you run out of other peoples money. Thatcher 2012-06-13 17:09:07 Permalink
Genesis Posts: 130779 Incept: 2007-06-26	Higher?! ---------- I don't care* if it makes sense -- only if it makes money. -- Me* Bank (n): See scam, fraud and theft. *Eat a bankster -- they're low-carb.* *What part of "shall not be infringed" was unclear?* 2012-06-13 17:09:22 Permalink
Steph4liberty Posts: 1684 Incept: 2010-10-22 Raleigh, NC	Jubber wrote.. and Spanish futures moving firmer... ---------- "Man will never be free until the last Banker is strangled with the entrails of the last Politician" - unknown "This isn't a market anymore, it's a computer game." - Drench 2012-06-13 17:11:06 Permalink
Jubber Posts: 14155 Incept: 2007-07-05 UK Online	from 6566 to 6580 ---------- The problem with socialism is that, sooner or later, you run out of other peoples money. Thatcher 2012-06-13 17:12:02 Permalink
Genesis Posts: 130779 Incept: 2007-06-26	That's not much.... let's see if it holds. ---------- I don't care* if it makes sense -- only if it makes money. -- Me* Bank (n): See scam, fraud and theft. *Eat a bankster -- they're low-carb.* *What part of "shall not be infringed" was unclear?* 2012-06-13 17:14:47 Permalink
Spanktron9 Posts: 2784 Incept: 2009-03-13 Reality.	Futures move on hopes for larger no strings bailout? ---------- "Winter is coming." -Motto of House Stark "Mo'lon La'be"- Leonidas "Strong people are harder to kill than weak people, and more useful in general" - Mark Rippetoe "Its like Calvinball."-MarvinMartian 2012-06-13 17:16:22 From PDA Permalink
Vitchilo Posts: 4626 Incept: 2011-04-27	Don't worry, everything will be alright! http://www.rte.ie/news/2012/0613/greece-.... Quote: "Greece has about 2 billion to pay salaries and pensions until July 20, media reports said today. http://www.zerohedge.com/news/european-b.... Quote: European Banks Preparing To Boycott Big Three Rating Agencies Rating agencies won't matter soon enough... right? /sarc http://af.reuters.com/article/worldNews/.... Quote: Combined daily deposit outflows from the major Greek banks have reached 500-800 million euros over the past few days, with the pace picking up as the election draws closer and rising noticeably on Tuesday, two bankers said Bullish... And of course the US bonds making record low yield... which congress think is awesome and will last forever... And of course the cyprus bailout is coming.. Quote: CYPRUS LIKELY TO HAVE TO SUPPORT ONE OF ITS BANKS, SHIARLY SAYS CYPRUS GOVERNMENT IN CLOSE CONTACT WITH EU ON BANKS: SHIARLY CYPRUS'S BANKING SYSTEM AT CRITICAL TURN, SHIARLY SAYS CYPRUS PREFERS PRIVATE SOLUTION TO EU BAILOUT FOR BANKS:SHIARLY All that we need now is a war to kick off in the middle-east so the banksters get their distraction... http://www.spacewar.com/reports/US_brace.... Quote: U.S. braces for action in Persian Gulf Bullish. Quote: Egypt authorizes military to arrest civilians (AP) Bullish too ahead of the election... Quote: Coordinated car bomb attack in Iraq kills 65, injures over 200 (AP) Bullish for civil war in Iraq... Quote: Syria no-fly zone is one option under UN consideration, says French FM (Reuters) Bullish for the arms manufacturers... ---------- "Every normal man must be tempted at times to spit upon his hands, hoist the black flag, and begin slitting throats." -- H.L. Mencken Last modified: 2012-06-13 17:36:43 by vitchilo 2012-06-13 17:31:39 Permalink
Mari Posts: 1012 Incept: 2010-03-05 Central MD	Buddy reported: Quote: From ZH: European Banks Preparing To Boycott Big Three Rating Agencies http://www.zerohedge.com/news/european-b.... Well, of course, because IGNORING those who are telling you the truth when you don't want to hear it will just solve all the problems. We are so ***ed - oh, wait, Karl's been telling us that for years, hasn't he? ---------- I bleed purple and orange! 2012-06-13 17:41:58 Permalink*
Bshj Posts: 347 Incept: 2007-08-07 Near Huntsville Texas - Execution Capital	it's not even a YAHOO news story but they are reporting that Cyprus was cut two notches (from broke to a little more broke) 2012-06-13 17:46:47 Permalink
Vitchilo Posts: 4626 Incept: 2011-04-27	Bshj : well won't make much of a difference... Cyprus stock market has collapsed 97% since the top in 2008... ---------- "Every normal man must be tempted at times to spit upon his hands, hoist the black flag, and begin slitting throats." -- H.L. Mencken Last modified: 2012-06-13 17:52:10 by vitchilo 2012-06-13 17:50:48 Permalink
Highrev Posts: 5025 Incept: 2009-02-21	It's become comical. The fear trade to support Treasuries. By the same folks who sold us Triple A MBS in 2008 nonetheless. Uh huh. Yet, someone's been putting a bid under that market place. Yeah, I'll bet that's retail doing the buying. (Spain is not Greece people. Do a balance sheet analysis of the country both private and public sectors. Their net worth, that's right, accumulated riches, is envious. 80% of Spaniards own their own home, and 60% of those homeowners have no outstanding mortgage! That's one hell of a lot of collateral! Have I mentioned the Spanish multinationals and their holdings? The Spanish government's holdings? Yes, I have, in previous posts these last coupld of days. Forget about the banking sector for a minute and look at the rest of Spain's productive assets. Wouldn't Greece like to have what Spain's got? Wouldn't Ireland like to have what Spain's got? Etc. etc. Have you really thought about it? You think those are sheepherders running Repsol? From human resources to natural resources and accumulated wealth, there aren't many that compare - can you say what the Central Valley is to the U.S., Spain is to Europe? Again, do a balance sheet analysis of the country before inserting foot in mouth.) ADD: I sure hope Bernanke's at least lightening up by selling into this strength. ---------- Enlightened self-interest http://en.wikipedia.org/wiki/Enlightened.... HighRev's Open House is my internet hangout. Drop by whenever you like. The door is always open. Last modified: 2012-06-13 18:22:21 by highrev 2012-06-13 17:51:23 Permalink
Widgeon Posts: 13481 Incept: 2007-08-30 Region formerly known as the United States	LOL LOL Indeed. 84% HFT. 2012-06-13 17:56:53 Permalink
Apotheoun Posts: 1283 Incept: 2009-08-14 MN	only one question remains... why are we not at tickcon 1? expecting something unforseen or think it will take some time to degrade? ---------- "when despair is all you can see, the end is finally near." "Because there is some good left in this world, AND ITS WORTH FIGHTING FOR!" 2012-06-13 18:03:24 Permalink
Smacktle Posts: 1362 Incept: 2009-01-20 Texas	All this **** going on over there and the Olympics right around the corner. ---------- The faults of the burglar are the qualities of the financier. - George Bernard Shaw 2012-06-13 18:04:04 Permalink
Trades50 Posts: 4217 Incept: 2007-10-30 Land of Tax and Spend	There playing we can't hear you until it all implodes. ---------- When the people fear the government, there is tyranny. When the government fears the people, there is liberty. - Thomas Jefferson 2012-06-13 18:14:13 Permalink
Peterm99 Posts: 4993 Incept: 2009-03-21 SoCal	Highrev wrote.. . . . homeowners with no outstanding mortgage! That's one hell of a lot of collateral! It is ZERO collateral unless those homeowners foolishly put it up as such to take out loans. Do you really believe an appreciable number of them will do that as the European banking system is crumbling all around them? ---------- ". . . the Constitution has died, the economy welters in irreversible decline, we have perpetual war, all power lies in the hands of the executive, the police are supreme, and a surveillance beyond Orwells imaginings falls into place." - Fred Reed Last modified: 2012-06-13 18:19:59 by peterm99 2012-06-13 18:14:35 Permalink

Jubber wrote..

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Highrev wrote..