Mass S&P downgrade as Greek debt impasse hit euro zone

Comments (28)
Harry079 wrote:

Didn’t I already comment on this story.

I’m confused and downgraded.

Jan 13, 2012 10:56am EST  --  Report as abuse
Harry079 wrote:

Two stories with the exact same Headlines one with the comments posted earlier one without.

Jan 13, 2012 11:01am EST  --  Report as abuse
jaham wrote:

Why are ratings agencies even relevant? Why would anyone pay attention to them when they have missed the right call and been late to the party so many times.

The markets are determining the risk/reward tradeoff in real-time everyday. We don’t need these idiots to chime in with their worthless opinions.

You know what they say: Opinions are like…

Jan 13, 2012 11:28am EST  --  Report as abuse
Harry079 wrote:

I figured it out.

One story was downgraded.

;0)

Jan 13, 2012 11:38am EST  --  Report as abuse
jmcouto1 wrote:

What a wonderful photograph in this article. I can recognize it. :)

Jan 13, 2012 12:00pm EST  --  Report as abuse
SeaWa wrote:

Good.

Jan 13, 2012 12:11pm EST  --  Report as abuse
SeaWa wrote:

Good.

Jan 13, 2012 12:11pm EST  --  Report as abuse
hariknaidu wrote:

This is a complot of the anglo-american and whitehall mandarins bent on destroying the EZ, as Cameron shows his disdain for fiscal union.

How far will they go? Do they have the where-with-all of stopping ever closer integration of EU? Or are they the same idots who have suddenly smelled the end of EZ?

Methinks this is another bubble – on the journey – which EU and its Parliament will have to scrutanize and judge for what it is.

Jan 13, 2012 12:41pm EST  --  Report as abuse
jaysails wrote:

I am actually downgrading Standard and Poor’s today from a C- to a DD-.
The reason- lack of credibility. Moody’s is also poised for a downgrade for the same reason.

Jan 13, 2012 1:19pm EST  --  Report as abuse
SeaWa wrote:

I think the EU is overstepping sovereignty of its independent states. It is also using unification as an excuse for anti-american sentiment and busting the american private sector. Before they created a Eurozone, they needed to create a political union. Once federalized, then they could heave better integrated their markets. They’ve moved ahead, with Germany at the helm, and eyes straight on fiscal gain regardless of political, social, or cultural unification. In other words, they put the cart before the horse, Germany used the opportunity to seize economic power over the EU with France once again being its lap dog. I hope the UK holds strong on its sovereignty. The Euro is not the Dollar will not even be close until Europe secures a political and social union. It is doomed to fail, if not now, then eventually, until Europe can stand as one country and not just a trading block.

Jan 13, 2012 1:41pm EST  --  Report as abuse
who_cares wrote:

I hope the Europeans get their own rating agency. How about a downgrade of USA as they have not sorted anything regarding their debt. The USA rating agencies are destroying the markets.

Jan 13, 2012 2:52pm EST  --  Report as abuse

Why does market still listen to discredited “Agencies” like S&P/Moody?
David Brown
Infinity Capital Management

Jan 13, 2012 2:53pm EST  --  Report as abuse
ArghONaught wrote:

As with most “accounting tricks” this is another fabrication based on mostly arbitrary decisions to roll the markets and generate uber-profits for the high rollers. National credit ratings are ridiculous excepting for the most fragile economies. There is a reason the money lenders have been vilified through out history. Perhaps we need drivatives based on the 3rd order differential of tax income as a ratio to GDP divided by the speed of printing currency notes?

Jan 13, 2012 3:55pm EST  --  Report as abuse
ArghONaught wrote:

As with most “accounting tricks” this is another fabrication based on mostly arbitrary decisions to roll the markets and generate uber-profits for the high rollers. National credit ratings are ridiculous excepting for the most fragile economies. There is a reason the money lenders have been vilified through out history. Perhaps we need drivatives based on the 3rd order differential of tax income as a ratio to GDP divided by the speed of printing currency notes?

Jan 13, 2012 3:55pm EST  --  Report as abuse
griva wrote:

There is a huge bet on crashing the EZ.Lots of money that will be stolen from European and American people too

Jan 13, 2012 4:39pm EST  --  Report as abuse
pilgrimson wrote:

A day of reckoning is coming for the poor risk countries, as measured by their deficit spending and massive debts. Default seems to be fashionable these days, as is printing of money. Now, apparently, the world has to wait a few more months to see what happens. A weak Euro is not a bad thing for an exporting country, like Germany, but it has to have viable markets to export into! Nobody should have reasonably expected the populations of a group of countries to give up their political sovereignty voluntarily.

Jan 13, 2012 4:50pm EST  --  Report as abuse
Neurochuck wrote:

I’m just going to watch the cricket and smoke some ganja. It’s all stuffed.

Jan 13, 2012 5:18pm EST  --  Report as abuse
SanPa wrote:

The ratings downgradees of Italy and France have been curious. What of their respective and sizeable sovereign exchange reserves? This seems like a game derived for the benefit of hedge funds, and not so much a beneficial warning to investors.

Jan 13, 2012 5:29pm EST  --  Report as abuse
JoeObserver wrote:

Lets give some time to EZ countries to sort out this mess. Understandably, Cameron/UK would be happy to see destruction of Eurozone countries, lets not forget world economy also depends on success of EZ economy.

Jan 13, 2012 5:35pm EST  --  Report as abuse
gregbrew56 wrote:

*YAWN*

These are the very same folks that rated toxic real estate loan derivatives as “AAA”.

Why should we care?

Jan 13, 2012 5:50pm EST  --  Report as abuse
LEEDAP wrote:

@jaham, you are spot on. Where were the credit agencies BEFORE Greece was threatening to default? Even a progressive like me recognizes that the markets based on due diligence are better at predicting the proper price of bonds than some stodgy agency. Their timing is off by a couple years. It is my understanding that Italy was managing it’s debt BEFORE their rates went sky high and NOW they get a downgrade? Aren’t credit agencies there to help simple folks like us determine risk BEFORE it happens? Telling us now that France has a bit of a credit risk is like telling me at noon that the sun may shine today. Useless.

Jan 13, 2012 5:51pm EST  --  Report as abuse
SeaWa wrote:

@ Joe – The world economy in the near term depends upon the success of the Euro. But the long term outlook would be better for the world with a sovereign Euro (one Europe) or no Euro. As this amalgamation is too unstable.

Jan 13, 2012 5:52pm EST  --  Report as abuse
J.Prokhorov wrote:

Let the most irresponsible fall apart. Rather than merely subtracting assets from liabilities, listen to explanations, too.

Jan 13, 2012 5:56pm EST  --  Report as abuse
user8192 wrote:

“Mr Sarkozy will be remembered as the president who downgraded France.”

Yeah, and Mr. Obama will be remembered as the president who downgraded the United States.

Jan 13, 2012 6:00pm EST  --  Report as abuse
Ananke wrote:

I am confused as how funds are expecting insurance payments if they inflict the default. This should be not covered at all.

Jan 13, 2012 6:02pm EST  --  Report as abuse

The downgrades are caused by the failure of EU countries to create plans for growth, similar to small business loan plans, that focus countries and their big banks on actions to create the growth that will develop businesses, jobs, workers, paychecks, customers, profits, and taxpayers. Profits let companies grow, repay debts, and pay taxes. Taxes let governments pay interest, retire bonds (debts), and finance current programs. Written plans reassure creditors that governments and their big banks have definite plans for growth and repayment. The EU’s plans have been to stack huge piles of cash in banks to act as “firewalls,” but the finance charges and operating expenses will devour the massive hoards without plans for growth. Banknotes cannot have sex with other banknotes to make new banknotes, whether paper or electronic, so the countries deserve the downgrades.

Jan 13, 2012 6:35pm EST  --  Report as abuse
Whittier5 wrote:

Really professional behavior on the part of S&P.
They issue Bogus A ratings for the crud in a skin Mortgage Sausage which helps greatly to cause the US & EU problems.
Now, that everybody is watching them, they try, miserably, to do the job they should have done 5-8 YEARS AGO!.

Does anyone even pay attention to S&P or Moody’s any longer?

Jan 13, 2012 7:08pm EST  --  Report as abuse
sailphi wrote:

Socialist party leader Martine Aubry said: “Mr Sarkozy will be remembered as the president who downgraded France.”

That’s like saying “All the money Bush spent was Obama’s fault.”

Jan 13, 2012 7:37pm EST  --  Report as abuse
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