Comments on: S&P downgrades Europe http://blogs.reuters.com/felix-salmon/2012/01/14/sp-downgrades-europe/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Strych09 http://blogs.reuters.com/felix-salmon/2012/01/14/sp-downgrades-europe/comment-page-1/#comment-35041 Mon, 16 Jan 2012 17:29:17 +0000 http://blogs.reuters.com/felix-salmon/?p=11876#comment-35041 You have to wonder what people like ‘theyenguy’ did for an outlet before blog commenting came into widespread use. Were they the guys who liked to wonder around downtown with a sign reading “The End is at hand” and talking loudly to themselves like a paranoid schizophrenic?

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By: pavlaki http://blogs.reuters.com/felix-salmon/2012/01/14/sp-downgrades-europe/comment-page-1/#comment-35016 Sun, 15 Jan 2012 20:36:08 +0000 http://blogs.reuters.com/felix-salmon/?p=11876#comment-35016 theyenguy – I don’t know what to say after your posting!

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By: pavlaki http://blogs.reuters.com/felix-salmon/2012/01/14/sp-downgrades-europe/comment-page-1/#comment-35015 Sun, 15 Jan 2012 20:35:58 +0000 http://blogs.reuters.com/felix-salmon/?p=11876#comment-35015 theyenguy – I don’t know what to say after your posting!

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By: realist50 http://blogs.reuters.com/felix-salmon/2012/01/14/sp-downgrades-europe/comment-page-1/#comment-35011 Sun, 15 Jan 2012 07:20:48 +0000 http://blogs.reuters.com/felix-salmon/?p=11876#comment-35011 Thank you, Felix. Your point on the EFSF is very insightful.

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By: hariknaidu http://blogs.reuters.com/felix-salmon/2012/01/14/sp-downgrades-europe/comment-page-1/#comment-35009 Sat, 14 Jan 2012 16:59:31 +0000 http://blogs.reuters.com/felix-salmon/?p=11876#comment-35009 The hell with S&P ratings when comparable UK is rated AAA and France AA. Why?

Is this a anglo-american political game, right after Italian spreads moved down comfortably(!) and Spain fetched double(!)the amount it set out for, to blunt the FX market movement; or is it calculated to stangulate Euro and EU Project?

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By: theyenguy http://blogs.reuters.com/felix-salmon/2012/01/14/sp-downgrades-europe/comment-page-1/#comment-35008 Sat, 14 Jan 2012 16:54:49 +0000 http://blogs.reuters.com/felix-salmon/?p=11876#comment-35008 The age of liberal finance came to an end with the Friday January 9, 2011, S&P downgrade of nine European nations.

Our times are best understood through the lens of bible prophecy. The Sovereign Lord God, Psalm 2:4-5, is acting to bring forth a revived Roman Empire, that is a German led Europe.

At the appointed time, He will open the curtains, and out onto the world’s stage will step the most credible leader. This Little Horn, or Little Authority, Daniel 7:25, will work behind the scenes in regional framework agreements to change our times and laws to provide order out of the chaos from a soon coming credit breakdown and financial system collapse. The existing rule of law will be replaced by his word, will and way, Revelation 13:5-10. In the supranational New Europe, national sovereignty will be seen as a relic of a bygone era. The people will be amazed by this, and place their faith and trust in him; they will give their allegiance to his diktat, Revelation 13:3-4.

The Banker regime of Neoliberalism came via the Free To Choose floating currency script of Milton Friedman; but these are now sinking, causing global disinvestment out of stocks and deleveraging out of commodities. The natural result of destructionism is the rise of despotism.

The Beast regime of Neoauthoritarianism, Revelation 13:1-4, is rising in its place. It comes via the 1974 Club of Rome’s Clarion Club for regional global governance. This monster of statism and collectivism is rising from the profligate Mediterranean countries of Italy and Greece. The Beast’s seven heads are rising to occupy in all mankind’s institutions, and its ten horns are rising to govern in all of the world’s ten regions. The Beast system is coming like a terminator that can’t be bargained with. It can’t be reasoned with. It doesn’t feel pity, or remorse, or fear. And it absolutely will not stop, ever until mankind is totally dominated and subdued.

Bank nationalization is coming world wide. Banks will be nationalized in 2012; perhaps better said banks will be regionalized as Bloomberg reports Too-Big-to-Fail Definition May Be Expanded. Global regulators may expand the definition of a too-big-to-fail financial firm, signing up domestic lenders, clearing houses and insurers to capital rules designed for the world’s biggest banks. The “framework should be in place for domestically systemically important banks by the end of the year,” Mark Carney, chairman of the Financial Stability Board, said yesterday after a meeting of the group in Basel, Switzerland. Deutsche Bank AG (DBK), BNP Paribas SA (BNP) and Goldman Sachs Group Inc. (GS) were among 29 banks subject to the so-called capital surcharge on globally systemic financial institutions drawn up by the FSB in November. Banks will have to boost reserves by 1 to 2.5 percentage points above minimum levels agreed on by international regulators. The new banks will be known as government banks.

In a bank insolvent and sovereign insolvent world, regional stakeholders will be appointed to Stakeholder Committees, that is regional public private partnerships, PPPs. Public private partnerships, such as Macquarie Infrastructure, MIC, will take the lead in managing the factors of production. Canadian Energy Income Companies, ENY, and Canadian Oil and Pipeline Companies such as Enbridge, ENB, will for all practical purposes, be regionalized, that is something akin to being nationalized. There will be New Credit for the New Europe, it will be Stakeholder Credit coming from the Stakeholder Committee, as it meets in working group conference. This Stakeholder Credit will complement regional global governance to provide funding for the operations of industry critical to the EU’s security and stability. As for the people, the residents of the New Europe, the prevailing concept will be, let them eat diktat. … http://tinyurl.com/6pptlqw

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By: Sechel http://blogs.reuters.com/felix-salmon/2012/01/14/sp-downgrades-europe/comment-page-1/#comment-35003 Sat, 14 Jan 2012 14:04:37 +0000 http://blogs.reuters.com/felix-salmon/?p=11876#comment-35003 “The function of a ratings agency is to visit the field at the end of the battle and shoot the wounded.” – John Heimann Comptroller of the Currency
1977 to 1981

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By: Danny_Black http://blogs.reuters.com/felix-salmon/2012/01/14/sp-downgrades-europe/comment-page-1/#comment-35000 Sat, 14 Jan 2012 12:10:27 +0000 http://blogs.reuters.com/felix-salmon/?p=11876#comment-35000 Sechel, I agree it is time to end the regulatory preference highly rated products get but the idea a country is a lower credit risk than any collection of assets in the country is nonsense. A country can choose not to pay, a trust cannot. A country merely has it is faith and credit behind the debt, a trust has assets. A country is limited to tax collection in a geographic area under a current regime, a company is not.

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By: Danny_Black http://blogs.reuters.com/felix-salmon/2012/01/14/sp-downgrades-europe/comment-page-1/#comment-34999 Sat, 14 Jan 2012 12:06:15 +0000 http://blogs.reuters.com/felix-salmon/?p=11876#comment-34999 Repeat after me… AAA only measures credit risk, even if it 100% accurately measured credit risk it would not mean AAA is “risk-free”. It does not mean it is “information insensitive”.

Only one such product exists – you give me X and I promise to return to you 0 at some time in the future.

The cut to junk status is important because it means that a large slice of institutional investors can now not hold it, no matter what happens, due to regulations.

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By: Sechel http://blogs.reuters.com/felix-salmon/2012/01/14/sp-downgrades-europe/comment-page-1/#comment-34998 Sat, 14 Jan 2012 11:09:12 +0000 http://blogs.reuters.com/felix-salmon/?p=11876#comment-34998 The whole rating system is crazy. Aisle of Man is a better credit risk than the United States which can print its own money and a senior tranche of an RMBS collection of dodgy loans is a better bet than France in being called “money good”. First off no entity of collection of assets of a country can be a better credit risk than it’s central bank(whoops! S&P seems to have forgotten about the sovereign ratings cap) and the history of defaults in securitized assets suggests the AAA tranche may not be a slam dunk. Time to end ratings.

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