The three largest credit rating agencies (CRA) – Moody's, Standard & Poor's, Fitch – are ready to downgrade PIGS, France, and all European banks. Most institutional investors have regulatory fiduciary requirements that necessitate the use of credit ratings as part of their daily business.
They may think that the three CRAs really have no useful insights, but they still need to use their ratings. So this business is pretty much like any business that is given a legislative right to serve. CRAs could not have possibly been more wrong on their ratings of U.S. mortgage debt instruments. Chimps throwing darts are much better than pseudoexperts are!
All debt ratings of European banks are on review for downgrade. The subordinated debt may be cut on average by two levels, with the rest lowered by one grade. Basil Venitis points out Frankfurt Group is the shadow board of Eurozone. It consists of Merkozy, Barrompuy, Draghi, Lagarde, Juncker, and Rehn. Frankfurt Group is hiding the fact that Fourth Reich is in depression. Hoodwinking citizens is something Eurokleptocrats have learned from Graecokleptocrats. Europeans see that most of their kith and kin are without job and wonder what's going on. Que Sera Sera!
Banks in PIGS and France have the most ratings to be reviewed as governments in Europe face limited financial flexibility and consider reducing support to creditors. The three CRAs point out that a rapid escalation of Fourth Reich's sovereign debt crisis threatens the entire world.
Banks in PIGS have unloaded risks amounting to one trillion euros with central banks. The central banks have distributed large sums to their countries' financial institutions to prevent them from collapsing. They have accepted securities as collateral, many of which are garbage.
These risks are now on ECB's books, because the central banks of eurozone are not autonomous but, part of the ECB system. When banks in PIGS go bankrupt and their securities are garbage, the euro countries must collectively account for the loss. Bundesbank, provides one third of the ECB's capital, which means that it would have to pay one third of all losses. http://venitism.blogspot.com
Greece, the land of kleptocracy, 23% VAT, and kangaroo justice, is in deep depression. The three CRAs declare that systemic support for subordinated debt is no longer sufficiently predictable or reliable to be a sound basis for incorporating uplift into three CRAs ratings. Financial and fiscal stability concerns will make it difficult for central banks to aggressively fight inflation pressures once they emerge.
The European Central Bank is just the latest victim of the Greek government, the most disgusting persecutor of dissident bloggers. The sovereign and banking crises have forced ECB into actions that threaten to undermine its credibility over time. The gold price and exchange rates have already been signaling a loss of confidence in the value of fiat money for some time.
Venitis declares Greece is a kangaroo valley! There is no justice, and perjurers are a dime a dozen. Dissident bloggers are persecuted, and Graecokleptocrats enjoy impunity. Election to a public office means a license to receive kickbacks, provide sinecures to kith and kin, terrorize Greeks, and do as you please. http://venitism.blogspot.com
Papademos cannot succeed without justice. Prevalent is his inability to rein in the Ministry of Foreign Affairs (MFA), which persecutes dissident bloggers, using the Cyber Crime Unit (CCU) as a political tool. MFA terrorizes the blogosphere with charge stacking. Kangaroo justice is the Achilles Heel of Papademos. If Greeks are not treated fairly, how could they support him?
Persecuting dissident bloggers, the Greek government violates Article 2 of the Lisbon Treaty, which states the European Union is founded on the values of respect for human dignity, freedom, democracy, equality, the rule of law, and respect for human rights. These values are common to the Member States in a society in which pluralism, non-discrimination, tolerance, and justice prevail.
The Greek government uses charge stacking to persecute dissident bloggers. Charge stacking is the ability to charge a large number of overlapping crimes for a single course of conduct. Combining crimes enables prosecutors to get convictions in cases where there is no misconduct at all. By stacking enough charges, including treason, Greek prosecutors jack up the threat value of a trial against a dissident blogger, even if the government's case is very weak. Charge stacking is terror. The Greek government cannot terrorize the Greek people.
Graecokleptocrats persecute and rob dissident bloggers. Obama declares that agreeing on a sufficient response to Fourth Reich's problems is of huge importance to USA. Eurogroup gathers in Brussels today to discuss how EFSF could insure sovereign debt with guarantees. Venitis notes EFSF is due to expire, and is supposed to be replaced by the European Stability Mechanism (ESM) in mid-2013. But the ESM will have the same problem the EFSF does. Its finances depend on the very same countries that it is supposed to bail out. This isn't stability, but a Ponzi scheme! An ECB bazooka cannot restore competitiveness to PIGS.
The kangaroo government of Greece bewilders Fourth Reich. The three CRAs point out that policy makers are increasingly unwilling and constrained in their support for all classes of creditors, in particular for subordinated debt holders. There have also been cases where countries have faced an increasingly stark trade-off between the need to preserve confidence in their banking systems and the need to protect their own balance sheets. The freakish government of Greece steals computers of dissident bloggers!
Corporate bonds have their biggest losses since the aftermath of Lehman Brothers's failure as Fourth Reich's crash drags down returns for financial institutions. Vice-Chancellor Philipp Roesler warns Graecokleptocrats have a choice, reforms within eurozone or no reforms and expulsion. There is no third way. Shape up or ship out, pure and simple!
The kangaroo justice government of Greece must stop violating the Lisbon Treaty. Graecokleptocrats are ungrateful to Germans, and at some point German patience will end. Germans are near the limit of elasticity. But nobody trusts the freakish Greek government which persecutes and robs dissident bloggers. http://venitism.blogspot.com
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