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S&P's David Beers warns enlarging the EU bailout fund (EFSF) could trigger ratings...

S&P's David Beers warns enlarging the EU bailout fund (EFSF) could trigger ratings downgrades - for the fund itself, and even Germany and France. "There (are) no cheap, risk-free leveraging options for the EFSF any more," he says.
Comments (9)
  • inquisitivemind7
    , contributor
    Comments (208) | Send Message
     
    There's no free lunch, money is a net zero sum game.
    25 Sep 2011, 07:54 PM Reply Like
  • nightfly
    , contributor
    Comments (1017) | Send Message
     
    Even if it somehow gets implemented, which isn't likely, the impact won't likely last more than 9 months or so, just like the various bailouts and QEx in the US.

     

    The answer to debt is not more dept and spreading it around to thin it out. It has to be cut and cut hard, only then can a solid foundation of growth be laid.
    25 Sep 2011, 08:05 PM Reply Like
  • Jolly_Rancher
    , contributor
    Comments (546) | Send Message
     
    In this situation, spreading risk is always a good thing. Enforcing debt limits should be part of that. Forcing debt holders to take a 50% loss hopefully provides that enforcement.
    25 Sep 2011, 08:16 PM Reply Like
  • deercreekvols
    , contributor
    Comments (5142) | Send Message
     
    One would think that a down grade from S&P or Moody's would be the least of the worries for what these countries are facing.
    25 Sep 2011, 08:30 PM Reply Like
  • EMS
    , contributor
    Comments (563) | Send Message
     
    "Pump it", let the well-to-do, and in the know dump it.
    Rinse, repeat. Nothing new here, nothing to see folks.
    25 Sep 2011, 09:10 PM Reply Like
  • David Urban
    , contributor
    Comments (1036) | Send Message
     
    What nobody here has mentioned is the inability of Greece to make the necessary structural changes to their economy.

     

    Because of this the market will price Greek debt at default levels going forward and rerate all EU debt lower because they are giving Greece bailouts without the necessary structural changes.
    25 Sep 2011, 09:25 PM Reply Like
  • RM13
    , contributor
    Comments (710) | Send Message
     
    Yup, force structural changes and Greek orderly or disorderly default OR in near future all of eurozone will be treated as default zone. This means eurozone Great Recession II or outright depression. If that was to happen, US is enough of trading partner to be in recession as well.

     

    I don't think any of us need analysts to figure that out. Questions I have now are - when will US treasuries top out and how low will defensive market plays and gold go before I commit some of my assets.
    25 Sep 2011, 09:40 PM Reply Like
  • pretsler
    , contributor
    Comments (9) | Send Message
     
    You mean to tell me we're still listening to the ratings companies whose fraud nearly catapulted the global economy?
    25 Sep 2011, 11:28 PM Reply Like
  • golfitobob
    , contributor
    Comments (2347) | Send Message
     
    Yes there still listening to those idiots. but, so far even the infallable CDS boys/girls missed the Europe debt. Now the world knows even Germany is worse then Japan and still their 10 year is in nose bleed levels as the US 10 year.......... Insanity..... The Euro an US debt can orbit the sun and the politicos are calling for MORE & MORE.

     

    Merkal is calling for 3 trillion Euros ASAP and 115 million Democrats want QE 1200......... Where can you go. Fiat maddness and gold ;silver, copper an oil are being sold to rase fiat bills.

     

    Brazil just started a trade war with China is poking Europe and doing the carrot an stick with survival funds. it Europe won't cow tow and we get tariffs... Boom a worldwide trade war and a planet wide depression...............

     

    Like in the Godfather," Mikey, this gotta happen every so often. Like Hitler we shouda stopped him " ( fat Clemensa )
    26 Sep 2011, 03:21 AM Reply Like
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