Thursday, June 07, 2012

Spain Gets Downgraded By Fitch to BBB, EFSF Blowout

What's that? Central banking is so advanced and can save everyone -
First it Egan-Jones (of course). Then S&P. Now Fitch (which sees the Spanish bank recap burden between €60 and a massive €100 billion!) joins the downgrade party of rating agencies that have Spain at a sub-A rating. Only Moody's is left. What happens when Moody's also cuts Spain from its current cuspy A3 rating to sub-A?
The Real Effect
I'm growing quite weary of both sides of the conflict pretending like they are the only (cough) adults in the room and if you just joined the Dialectic War against the (Republican/Democrats), you too son, could be an adult. Uh no, you have a blue credit card and the other guy has a red credit card. Note the commonality? Oh, too hard for you to grasp, it's the credit card itself, NOT the color.

We have the same situation over in Europe where all of the supposed sophisticated first-worlders are going belly up one right after the other. Make no mistake, we will get our day in the sun.Why do I say that? Because it's a mathematical certainty. Pssst...It's a real simple concept. Lean in real close so the Master can tell you all his secrets. You ready? Here it is - If you spend more money than you make, you go...


Now, that'll be 300 euros. I'm sure you can find some extra ones somewhere, perhaps in a wheelbarrow?

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