Greece Default ‘Virtually 100 Percent’ (Washington Post)

See also:

Moody’s Downgrades Greek Credit Rating By Three Levels On Debt-Exchange Plan

Greece default ‘virtually 100 percent’ (Washington Post, July 25, 2011):

Moody’s Investors Service again downgraded Greece’s credit standing Monday, setting the stage for a likely declaration that the country is in default as a newly approved rescue plan moves forward.

In the first review by a ratings agency of the plan approved by European leaders last week, Moody’s cast doubt on the long-term impact on the conditions under which heavily indebted euro zone countries will be able to borrow money.

The ratings service said the plan does improve Greece’s financial prospects for the next few years and probably will stop the problems in that country from undermining confidence in weaker nations such as Ireland and Portugal — diminishing the risk that Europe’s financial troubles will spiral into a broader crisis.

But the fact that Greece is likely to default on one or more of its outstanding bonds sets a “negative precedent” that will diminish faith in other nations. Now that the 17-nation euro zone has shown it is open to a default, Moody’s said, it is more likely that other nations might try to follow suit.

Read moreGreece Default ‘Virtually 100 Percent’ (Washington Post)

Moody’s Downgrades Greek Credit Rating By Three Levels On Debt-Exchange Plan

See also:

Greece Just One Grade Above DEFAULT RATING As Fitch Slashes Rating By Another Three Notches:

…Fitch slashed its rating on Greece by another three notches and further into junk status. The move from B+ to CCC leaves Greece just one grade above a default rating.

Greek Credit Rating Lowered Three Levels by Moody’s on Debt-Exchange Plan (Bloomberg, July 25, 2011):

Greece’s credit rating was cut three steps by Moody’s Investors Service, which said the European Union’s rescue for the debt-laden nation will cause “substantial” losses for investors, amounting to a default.

Greece’s long-term foreign currency debt was downgraded to Ca, their second lowest rating, from Caa1, the company said in a statement in London today. Moody’s said it will re-assess the risk profile of any outstanding or new securities issued by the Greek government after the debt exchange that’s part of the rescue plan has been completed.

“The combination of the announced EU program and the debt exchange proposals by major financial institutions imply that private creditors will experience substantial losses on their holding of Greek government bonds and this is something we need to reflect in the rating,” Moody’s senior analyst Sarah Carlson said in an interview.

Read moreMoody’s Downgrades Greek Credit Rating By Three Levels On Debt-Exchange Plan

Moody’s Suggests US Eliminates Debt Ceiling – S&P: US Could Default Even if Debt Ceiling is Raised

Moody’s Suggests US Eliminates Debt Ceiling (CNBC, July 18, 2011):

Ratings agency Moody’s on Monday suggested the United States should eliminate its statutory limit on government debt to reduce uncertainty among bond holders.

The United States is one of the few countries where Congress sets a ceiling on government debt, which creates “periodic uncertainty” over the government’s ability to meet its obligations, Moody’s [MCO 35.34 -1.11 (-3.05%) ] said in a report.

“We would reduce our assessment of event risk if the government changed its framework for managing government debt to lessen or eliminate that uncertainty,” Moody’s analyst Steven Hess wrote in the report.

The agency last week warned it would cut the United States’ AAA credit rating if the government misses debt payments, increasing pressure on Republicans and the White House to come up with a budget agreement.

Moody’s said it had always considered the risk of a U.S. debt default very low because Congress has regularly raised the debt ceiling during many decades, usually without controversy.

However, the current wide divisions between the House of Representatives and the Obama administration over the debt limit creates a high level of uncertainty and causes us to raise our assessment of event risk,” Hess said.

S & P: America Could Default Even if Debt Ceiling is Raised (Washington’s Blog July 18th, 2011):

As I noted yesterday, America could default even if the debt ceiling is raised.

One of the big, government-sponsored American rating agencies has just confirmed my post.

Specifically, Standard & Poor’s announced today:

[We’re putting U.S. debt on] CreditWatch with negative implications … owing to the dynamics of the political debate on the debt ceiling, there is at least a one-in-two likelihood that we could lower the long-term rating on the U.S. within the next 90 days ….

The political debate about the U.S.’ fiscal stance and the related issue of the U.S. government debt ceiling has, in our view, only become more entangled.


We may lower the long-term rating on the U.S. by one or more notches into the ‘AA’ category in the next three months, if we conclude that Congress and the Administration have not achieved a credible solution to the rising U.S. government debt burden and are not likely to achieve one in the foreseeable future.

The Washington Post adds:

Read moreMoody’s Suggests US Eliminates Debt Ceiling – S&P: US Could Default Even if Debt Ceiling is Raised

Moody’s Places US AAA Credit Rating On Review For Downgrade As Debt Talks Stall

See also:

Russia Seeks To Loosen US Rating Credit-Rating Dominance, May Set Up Independent Rival Next Year

Germany’s Rating Agency Feri Downgrades US Government Bonds: AAA to AA!

China’s Rating Agency: ‘In Our Opinion The United States Has Already Been Defaulting’

Moody’s Places U.S. on Review for Downgrade As Debt Talks Stall (Bloomberg, Jul 14, 2011):

Moody’s Investors Service put the U.S. under review for a credit rating downgrade as talks to raise the government’s $14.3 trillion debt limit stall, adding to concern that political gridlock will lead to a default.

The Aaa ratings of financial institutions directly linked to the U.S. government, including Fannie Mae, Freddie Mac, the Federal Home Loan Banks, and the Federal Farm Credit Banks, were also put on review for cuts, Moody’s said in a statement today.

The U.S., rated Aaa since 1917, was put on review for the first time since 1995 on concern the debt limit will not be raised in time to prevent a missed payment of interest or principal on outstanding bonds and notes even though the risk remains low, Moody’s said. The rating would likely be reduced to the Aa range and there is no assurance that Moody’s would return its top rating even if a default is quickly cured.

“It certainly underscores the importance of passing the debt ceiling and not putting us in default status, and making sure there’s a longer term fiscal plan to contain spending and the deficit we’ve been running up over the last few years,” said Anthony Cronin, a Treasury bond trader at Societe General SA in New York, one of the 20 primary dealers that trade with the Federal Reserve. “Maybe it’s the impetus to say we’ll need more of a concession.”

Read moreMoody’s Places US AAA Credit Rating On Review For Downgrade As Debt Talks Stall

Moody’s Cuts Ireland to Junk, Retains Negative Outlook; Why Ireland Should Be Thankful!

Moody’s Cuts Ireland to Junk, Retains Negative Outlook; Ireland Should Be Thankful (Global Economic Analysis, July 13, 2011):

Moody’s just effectively spit in the face of EU commissioner Michel Barnier who wants to prohibit rating debt of countries in rescue programs.

Read moreMoody’s Cuts Ireland to Junk, Retains Negative Outlook; Why Ireland Should Be Thankful!

Moody’s Downgrades Ireland’s Credit Rating From Baa3 To Junk

Moody’s Downgrades Ireland From Baa3 To Junk (ZeroHedge, July 12, 2011):

Who would have thought a few years ago that Moody’s would be one of the biggest supporters of the gold bulls…

Moody’s Investors Service has today downgraded Ireland’s foreign- and local-currency government bond ratings by one notch to Ba1 from Baa3. The outlook on the ratings remains negative.

Read moreMoody’s Downgrades Ireland’s Credit Rating From Baa3 To Junk

Russia Seeks To Loosen US Rating Credit-Rating Dominance, May Set Up Independent Rival Next Year

Russia Seeks to Loosen Rating Companies’ Grip (Bloomberg, July 13, 2011):

Russia and members of the Eurasian Economic Community, a grouping of former Soviet republics, are seeking to loosen the dominance of U.S. credit-rating companies and may set up an independent rival next year.

Prime Minister Vladimir Putin has said he’s an “ardent supporter” of the plan because Russia’s debt grade is an “outrage” that lifts corporate borrowing costs and increases risks. The nation’s sovereign credit rating was last raised by New York-based Moody’s Investors Service in 2008 to Baa1, the third-lowest investment grade, one step above Brazil and four below China.

“It’s madness to trust American rating agencies,” Sergei Glazyev, the group’s deputy general secretary, said in an interview in Moscow yesterday. “The market is objectively interested in new reference points.”

Russia is championing a new ratings company after Poland said last week it may use its six-month term holding the rotating presidency of the European Union to campaign for an independent European credit evaluator. Dagong Global Credit Rating Co., the first domestic rating company set up in China, began issuing sovereign ratings a year ago.

Russia is rated A by Dagong, one level below the U.S. Moody’s ranks Russia seven steps lower and Standard & Poor’s and Fitch Ratings eight levels below the United States’ AAA grade, their highest.

Read moreRussia Seeks To Loosen US Rating Credit-Rating Dominance, May Set Up Independent Rival Next Year

Portuguese Bonds In Meltdown

Portuguese Bonds In Melt Down – Euro Gold Rises To €1,056/oz – 3% From Record Nominal High On Contagion Risk (ZeroHedge, July 6, 2011):

The Moody’s downgrade of Portugal has led to a brutal sell off in Portuguese debt in morning trade which has seen Portuguese 10 year bond yields surge from 11.02% to 12.23%. Yields on Portuguese two-year notes soared 212 basis points to over 15.14 percent. There is increasing speculation that another downgrading of Ireland is imminent and Ireland’s 10 year yield has surged to over 12%.

Portugal received a $112 billion loan package only two months ago. It was due to sell 1 billion euros of treasury bills today but     the Portuguese government debt agency IGCP said it sold 848 million euros of bills due in October.

Portugal is a reminder that Greece is just the tip of the iceberg and Portugal, Ireland, Spain, Italy, Belgium, Hungary in Europe and the U.S. itself face similar challenges, of greater and lesser degrees.

TEPCO Admits 3 Nuclear Reactors May Have Melted Down

May 16 (Bloomberg) — Tokyo Electric Power Co. said fuel in other reactors at its damaged nuclear plant may have melted, after confirming rods in the No. 1 unit had fallen from their assembly, potentially delaying plans to resolve the crisis.

“The findings at the No. 1 reactor indicate the likelihood that the water level readings in the other reactors aren’t accurate,” Junichi Matsumoto, a general manager at the utility known as Tepco, said today. “It could be that a meltdown similar to that in the No. 1 reactor has occurred.”

Read moreTEPCO Admits 3 Nuclear Reactors May Have Melted Down

Euro Crisis Far From Over: What The ‘Experts’ Are Saying

Moody’s cut Spain’s debt rating on Thursday, pushing the euro lower and deepening the sense of crisis in the currency bloc on the eve of a crucial summit.

Euro crisis is far from over – what the experts are saying Photo: Larry Lilac / Alamy

The euro hit an intraday low against the dollar of $1.3791 and traders warned it could fall further in coming days due to market concerns that Friday’s 17-nation meeting and a summit of the full 27-nation European Union on March 24-25 may fail to agree on decisive action to tackle the debt crisis.

“If officials make no progress and Germans remain unwavering in their demands, the likelihood of a capitulation (in the euro) will be significantly higher,” said Jessica Hoversen, currency strategist at MF Global in Chicago.

She said that hawkish rhetoric from the European Central Bank was adding to investor concern. “The ECB’s disregard for economic variances may be the tragic flaw that drags the currency lower,” she said, adding that the compromise of $1.3862, the February 2011 high, opened downside potential.

“The euro seems to be under pressure given the downgrade from Moody’s,” Mary Nicola, a currency strategist at BNP Paribas SA in New York told Bloomberg. “Weaker-than-expected trade data out of China and Germany, all of those are putting pressure on the euro.”

Read moreEuro Crisis Far From Over: What The ‘Experts’ Are Saying

Moody’s Cuts Greece’s Credit Rating Again

See also:

With $5 Trillion In US And European Funding Needs Over The Next 3 Years, How Long Until The Global Monetization Tsunami Hits (Again)?

Portugal: Only €4 Billion In Cash Vs €20 Billion In Bond Maturity And Deficit Ouflows In 2011

Spain Is Still The Elephant In The European Room!

Happy currency reform!

• Ratings agency warns of more cuts if Greece pulls back from reforms
• EU leaders fear offering bailout to Portugal will leave Spain exposed

Moody’s has angered the Greek government, including finance minister George Papaconstantinou, by slashing its credit rating to B1. Photograph: Louisa Gouliamaki/AFP

Portugal took a step nearer a humiliating multibillion-pound bailout by the European Union on Monday after Greece saw its credit rating slashed to a new low and speculation grew that eurozone leaders will fail this weekend to agree measures to prevent a repeat of last year’s sovereign debt crisis.

The ratings agency Moody’s cut Greece’s credit rating by three notches to B1, which analysts said was deep into “junk” territory, sending the cost of insuring the country’s debt soaring.

The downgrade, which was attacked as reckless and “completely unjustified” by the Greek government, highlighted the collapse in confidence among international investors who fear peripheral eurozone countries such as Greece, Portugal and Ireland cannot afford to repay their debts.

Greece, like Ireland, has already been forced to accept a rescue package put together by the EU and the International Monetary Fund. Portugal is widely regarded as the next country in need of a bailout as it struggles to refinance its debts while still in recession.

Read moreMoody’s Cuts Greece’s Credit Rating Again

Moody’s Downgrades German Bank Subordinated Debt

Josef Ackermann Bilderberg 2010 in Sitges (Click on image to enlarge.)

18 Feb. (Bloomberg) — German banks’ subordinated debt securities valued at 24 billion euros ($33 billion) were downgraded by Moody’s Investors Service on the prospect that new legislation will increase the risk of losses among debt holders.

Moody’s cut the ratings of lower Tier 2 notes, a layer of debt that’s subordinated by coming behind senior bonds in the queue for repayment after a bank collapses. Like other governments seeking to ensure creditors pay up before taxpayers have to contribute, German law now removes the protection Tier 2 bonds enjoyed from the authorities’ preference for saving lenders before they fail.

“The new legislation materially reduces the likelihood of government support for LT2 securities and therefore took out the state support uplift,” BNP Paribas SA analysts Olivia Frieser and Ivan Zubo wrote in a note to clients today. “The downgrades are as harsh as we had expected, which may weigh on sentiment.”

The cost of insuring German bank debt rose, according to CMA prices for credit-default swaps. Contracts on the subordinated debt of Deutsche Bank AG jumped 12 basis points to 160, the highest in five weeks. Swaps linked to Commerzbank AG’s junior debt climbed 25 basis points to 450 and senior contracts rose 10 to 190.
Toughening Rules

Read moreMoody’s Downgrades German Bank Subordinated Debt

Moody’s May Downgrade Ratings of Four Biggest Australian Banks

Feb. 16 (Bloomberg) — Australia’s four biggest banks and their New Zealand unit may have their ratings cut by Moody’s Investors Service on concern that access to overseas markets for funding will be “significantly restrained.”

Australia & New Zealand Banking Group Ltd., National Australia Bank Ltd., Commonwealth Bank of Australia and Westpac Banking Corp. hold Moody’s second-highest Aa1 rating. They’re likely to remain in the Aa category after the review, Moody’s said in a statement today.

Read moreMoody’s May Downgrade Ratings of Four Biggest Australian Banks

Standard & Poor’s And Moody’s Warn On US Credit Rating

The elite puppet Obama administration is doing what it does best:

US Government Spends $6.85 Million Per Minute

Bankrupting America!

Americans never had a choice.

Preparing for collapse:

Virginia – HOUSE JOINT RESOLUTION NO. 557: ‘Establishing a joint subcommittee to study whether the Commonwealth should adopt a currency to serve as an alternative to the currency distributed by the Federal Reserve System in the event of a MAJOR BREAKDOWN of the Federal Reserve System.’

S&P and Moody’s warned the U.S. about its credit rating and urged the government to do more to arrest a deteriorating fiscal situation.

A Wall Street sign stands outside the New York Stock Exchange.

Jan. 13 (Wall Street Journal) — With attention focused on sovereign-debt worries in Europe, two major credit-rating firms reminded investors again that the U.S. has debt problems of its own.

Investors bought Treasury debt nonetheless, ignoring the comments, which echoed prior statements by the companies and may still be months or years away from having any practical meaning.

“The warning on the U.S. rating is well-founded,” said Brian Yelvington, chief fixed-income strategist at Knight Capital. “However, it will probably fall on deaf ears until the peripheral Europe story plays out.”

Moody’s Investors Service said in a report on Thursday that the U.S. will need to reverse the expansion of its debt if it hopes to keep its “Aaa” rating.

“We have become increasingly clear about the fact that if there are not offsetting measures to reverse the deterioration in negative fundamentals in the U.S., the likelihood of a negative outlook over the next two years will increase,” Sarah Carlson, senior analyst at Moody’s, said.

Read moreStandard & Poor’s And Moody’s Warn On US Credit Rating

Ireland’s Credit Rating Cut Five Levels By Moody’s With Negative Outlook

Ireland has been completely bankrupted and destroyed by the elite.

Nationalized Anglo Irish Bank losses are the worst in the entire world!

The elite puppet government and the elite puppet banksters have even stolen the pension reserve funds:

And Now … Ireland: Pension Reserve Funds To Be Spent On The Banksters

Iceland didn’t bail out the banksters:

Iceland: Economy Exits Recession

If Spain needs a bailout, it’s game over:

Spain’s Credit Rating on Review by Moody’s

And this is the best place to be:

Why is Greenland so rich these days? It said goodbye to the EU!

Dec. 17 (Bloomberg) — Ireland’s credit rating was cut five levels by Moody’s Investors Service and further downgrades are possible as the government struggles to contain losses in the country’s banking system.

The rating was lowered to Baa1 from Aa2, Moody’s said in an e-mailed statement from London today. That’s three levels above non-investment grade and the same level as countries including Russia and Lithuania. The outlook on the rating is “negative,” Moody’s said.

Irish lawmakers on Dec. 15 voted to accept an 85 billion- euro ($113 billion) aid package from European governments and the International Monetary Fund to stabilize the country’s finances. Moody’s said that confidence in Irish banks “evaporated” in the run-up to the bailout.

“While a downgrade had been anticipated, the severity of the downgrade is surprising,” Glas Securities, the Dublin-based fixed-income firm, said in an e-mailed note today.

Read moreIreland’s Credit Rating Cut Five Levels By Moody’s With Negative Outlook

Spain’s Credit Rating on Review by Moody’s

If  Spain  needs a bailout then it is game over:

Ireland Bailout Fails To Calm Nervy Markets – Prof. Nouriel Roubini Tells Portugal To Seek Bailout, Spain ‘Too Big To Bail Out’:

Nouriel Roubini, the US economist, said Portugal should consider asking for a bailout before its financial plight worsens as the euro fell after the €85bn Ireland bailout failed to ease eurozone debt fears.

Mr Roubini, the economist who predicted the financial crisis, told daily paper Diario Economico it is “increasingly likely” Portugal will require international assistance.

He said the country is approaching “a critical point” due to it high debt load and weak growth and there were ample funds to shore up Portugal, one of the eurozone’s smaller countries which contributes less than 2pc to the 16-nation bloc’s gross domestic product.

However, he said neighboring Spain, Europe’s fourth-largest economy, is “too big to bail out.”

Dec. 15 (Bloomberg) — Spain’s credit rating may be cut from Aa1, Moody’s Investors Service said, as the government prepares its final bond sale of the year tomorrow amid concern it may follow Greece and Ireland in seeking a bailout.

Spain has to raise 170 billion euros ($226 billion) next year, while refinancing needs for its regions total 30 billion euros and for banks around 90 billion euros, Moody’s estimates.

“Spain’s substantial funding requirements, not only for the sovereign but also for the regional governments and the banks, make the country susceptible to further episodes of funding stress,” Kathrin Muehlbronner, an analyst at Moody’s, said in a report today.

Spain lost its top rating at Moody’s in September as euro- region leaders struggled to contain the debt crisis. Spain is raising taxes, slashing wages and privatizing state industries to persuade investors it can avoid a rescue. Ireland last month became the second euro nation to get a bailout.

The rating will probably remain in the “Aa” range, Moody’s said. The company doesn’t see a bailout as “likely,” even though it “can’t rule it out,” Muehlbronner said.

Read moreSpain’s Credit Rating on Review by Moody’s

Moody’s: US companies hoarding almost $1 trillion cash

NEW YORK (Reuters) – U.S. companies are hoarding almost $1 trillion in cash but are unlikely to spend on expanding their business and hiring new employees due to continuing uncertainty about the strength of the economy, Moody’s Investors Service said on Tuesday.

As the economy stabilizes companies are also more likely to spend on share repurchases and mergers and acquisitions, Moody’s added.

Companies cut costs, reduced investment in plants and equipment and downsized operations in order to boost cash holdings during the recession. As the corporate bond market reopened many companies also boosted cash levels by selling debt and refinancing near-term debt maturities.

Read moreMoody’s: US companies hoarding almost $1 trillion cash

Moody’s Downgrades Ireland’s Credit Rating

See also:

Anglo Irish Bank losses are the worst in the entire world

• Moody’s cuts Ireland’s sovereign bond rating by one notch

• Move will add to fears over Europe’s debt crisis

• IMF pulled €20bn finance deal for Hungary at the weekend

Moody’s cut Ireland’s credit rating this morning, citing weaker growth prospects and the cost of rebuilding the country’s crippled banking system (The Guardian)

Credit ratings agency Moody’s has downgraded Ireland’s debt rating, adding to investor jitters about the state of Europe’s heavily indebted economies.

The agency cut Ireland’s sovereign bond rating by one notch to Aa2 this morning, citing weaker growth prospects and the high cost of rebuilding the country’s crippled banking system. It added that the outlook was stable.

But the downgrade comes after the International Monetary Fund and the European Union pulled a €20bn (£17bn) financing deal for Hungary over the weekend. Talks broke down on Saturday after the European commission voiced concerns over the newly elected Hungarian government’s budget plans.

This means Hungary will not have access to remaining funds of €5.5bn in its €20bn credit line, agreed two years ago, until a review is completed. Hungary’s currency, the forint, plunged more than 2.5% against the euro on the news and bond yields surged by up to 30 basis points.

Ireland’s downgrade came ahead of a bond auction tomorrow.

Read moreMoody’s Downgrades Ireland’s Credit Rating

Moody’s downgrades Greece’s credit rating to junk


ATHENS, Greece — Moody’s Investors Service slashed Greece’s credit rating to junk status on Monday in a new blow to the debt-ridden country that is under intense international scrutiny after narrowly avoiding default last month.

A Moody’s statement said it was cutting Greece’s government bond ratings by four notches to Ba1 from A3, with a stable outlook for the next 12-18 months. It was the second of the three major agencies to accord Greek bonds junk status. Standard & Poor’s did the same in late April.

The downgrades reflect concern that the country could fail to meet its obligations to cut its deficit and pay down its debt — which the Greek government says is out of the question.

Read moreMoody’s downgrades Greece’s credit rating to junk

Moody’s says very likely to downgrade Portugal’s credit rating

See also:

Elite Puppet Credit Rating Agencies Playing Big Roll In European Debt Crisis

* Downgrade now highly likely, review to take 3 months

* Still to discuss austerity with government

* Moody’s says may cut Portuguese banks’ ratings

The historic part of Lisbon, the Portugeuse capital, recreated after an earthquake devastated the City in 1755

LISBON/NEW YORK, May 5 (Reuters) – Moody’s Investors Service put its credit rating for Portugal on a three-month review on Wednesday, and a senior Moody’s analyst said that as a result a downgrade of the credit rating is now likely.

Moody’s said it could downgrade Portugal’s Aa2 ratings by one, or at most two, notches, citing “the recent deterioration of Portugal’s public finances as well as the economy’s long-term growth challenges,” especially due to low competitiveness.

“We have sent a signal that it is possible, and I have to say, statistically, there is a very strong likelihood that if we put it on a review for downgrade then we follow through with a downgrade,” Anthony Thomas, vice president at Moody’s Sovereign Risk Group, told Reuters.

He said a downgrade was more likely now than when Moody’s first placed Portugal on negative outlook last year.

Read moreMoody’s says very likely to downgrade Portugal’s credit rating

Elite Puppet Credit Rating Agencies Playing Big Roll In European Debt Crisis

Only very few people are brave enough to call the financial crisis what it really is and that is financial terrorism.

One of those few people is Max Keiser:

Max Keiser on Greece: ‘The IMF is a Financial Mafia’

Max Keiser on the Greek Crisis (with Greek subtitles)

The entire financial crisis is an engineered crisis. It’s a controlled demolition.

The elite is looting and bankrupting the people everywhere, and when the people will finally beg in total despair for a solution, then the elite will present to them the New World Order (world government, a new world reserve currency etc.) as only possible solution to all the problems that the elite has created in the first place.

The elite controls/owns/runs governments, central banks, Wall Street, the mass media and of course useless rating agencies (that gave AAA ratings to bundled junk).

Credit Rating Agencies Playing Big Roll In European Debt Crisis


NEW YORK — The downgrading of European debt is turning up the heat on the firms that issue the ratings.

Some European officials are calling for curbs on rating agencies like Standard & Poor’s, Moody’s Corp. and Fitch Ratings. They argue that conflicts of interest and bad information make the agencies’ assessments unreliable, even dangerous.

Germany’s foreign minister went so far Thursday as to suggest that the European Union should create its own rating agency. He spoke after downgrades of Greece and Portugal roiled financial markets and stoked fears that Europe’s debt crisis was spreading.

How ratings agencies are paid is also coming under scrutiny. The money they earn comes from the institutions whose products and debt they rate – a point of contention in the U.S. and Europe. At a hearing last week on the agencies’ role in the financial crisis, U.S. Sen. Carl Levin called that pay system an “inherent conflict of interest.”

Legislation in Congress to overhaul the financial regulatory system could change how the rating agencies do business. Critics (= Analysts, economists, investors that are not bought and paid for by the elite.) note that the agencies gave safe ratings to high-risk U.S. mortgage investments that later imploded, triggering the financial crisis and a deep recession.

Read moreElite Puppet Credit Rating Agencies Playing Big Roll In European Debt Crisis

US: Massive Jump In Emergency Unemployment Compensation Benefits – Up 43% In One Month!

I was intrigued by a post by Zero Hedge asking Is The Government Misrepresenting Unemployment By 32%?

“…government spent a record $14.7 billion on Unemployment Insurance Benefits as of December 30, a 24% jump sequentially from the $11.8 billion in November. Yet the DOL has disclosed a mere 1.7% increase in those to whom insurance benefits are paid: from 9.4 million to just under 9.6 million. To put the $14.7 billion number in perspective, in December the Federal Government paid a total of $14 billion ($700 million less) in Federal Salaries!

And some more perspective: in calendar 2009 the government has paid $140 billion in Unemployment Insurance Benefits. This is yet another economic stimulus that nobody in the administration discusses, yet which undoubtedly has the biggest impact on the economy, as all those millions unemployed can moderate their pain courtesy of a passable weekly check from the government which should just about cover the rent and beer.

Which is why more than anything, Obama is dead set on extending insurance benefit payments in perpetuity: because if the 10 million official and 14 million unofficial people who are on benefits (not to mention the tens of millions of unemployed unlucky enough to even get their weekly allowance from Uncle Sam) start thinking about their true predicament and their real “employability”, then a landslide loss by this administration at the mid-term elections will actually be an upside surprise to what it can objectively expect.

I figured the explanation would show up in charts somewhere and I asked Chris Puplava at Financial Sense for a chart of Emergency Unemployment Compensation (EUC) Benefits as well as an update on other charts he has graciously provided on request.

Click on any chart below for a crisper image.

From Chris Puplava …

My answer would be a MASSIVE jump in the Emergency Unemployment Compensation (EUC) benefits, which jumped from 3,594,253 (11/07/09) to 5,143,410 (12/19/09), up 43% in just over a month!

The increase in EUC more than offset the decline in continuing claims and we are now at a new record when combining all measures of unemployment benefits. Economists were pointing out that continuing claims and initial claims were falling as a bullish sign, however what was happening was that those benefits were exhausting for people who used up that benefit, leading to the decline in the numbers which is proved by a record (52.24%) exhaustion rate.

Record Unemployment Deterioration


However, these people were not finding employment which is why the House passed a bill in December to extend benefits, thus leading to a massive 43% jump in the aptly named “EMERGENCY” Unemployment Compensation program. The jump was so large that now the EUC numbers surpass continuing claims!

Read moreUS: Massive Jump In Emergency Unemployment Compensation Benefits – Up 43% In One Month!

Moody’s warns of ‘social unrest’ as sovereign debt spirals … because of bankster bailouts


Ah, I see …

Moody’s tells governments to prepare for the people finally understanding that their puppet governments have looted the taxpayer to save corrupt banksters from their own intentional stupidity.

No matter how much losses the banksters have claimed, there is always a counterpart to those enormous losses and that counterpart made a lot of money.

Could it be that the banksters were corrupted to be that stupid by the prospect of huge bonuses?

Follow the money and find out who built this intelligent system of corruption.

The elite behind the scenes gained, the people believing that the financial system had to be saved lost and will continue to lose until there is nothing left.

UK taxpayers face £2 trillion unfunded pensions liability, more than £80,000 for every household

Moody’s: Top US And UK Debt Ratings May ‘Test The Aaa Boundaries’

Treasury Pre-Budget Report Warning: UK ‘Faces Decades of Debt’

Morgan Stanley: Britain risks sovereign debt crisis in 2010

OECD warning: Britain risks ‘debt spiral’

The elite laughs at the people every day!

Britain and other countries with fast-rising government debts must steel themselves for a year in which “social and political cohesiveness” is tested, Moody’s warned.

Riot police clash with protestors during an anti G20 demonstration near the Bank of England. Moody’s has warned future tax rises and spending cuts could trigger more social unrest.

In a sombre report on the outlook for next year, the credit rating agency raised the prospect that future tax rises and spending cuts could trigger social unrest in a range of countries from the developing to the developed world.

It said that in the coming years, evidence of social unrest and public tension may become just as important signs of whether a country will be able to adapt as traditional economic metrics. Signalling that a fiscal crisis remains a possibility for a leading economy, it said that 2010 would be a “tumultuous year for sovereign debt issuers”.

It added that the sheer quantity of debt to be raised by Britain and other leading nations would increase the risk of investor fright.

Strikingly, however, it added that even if countries reached agreement on the depth of the cuts necessary to their budgets, they could face difficulties in carrying out the cuts. The report, which comes amid growing worries about Britain’s credit rating, said: “In those countries whose debt has increased significantly, and especially those whose debt has become unaffordable, the need to rein in deficits will test social cohesiveness. The test will be starker as growth disappoints and interest rates rise.”

Read moreMoody’s warns of ‘social unrest’ as sovereign debt spirals … because of bankster bailouts

Moody’s: Top US And UK Debt Ratings May ‘Test The Aaa Boundaries’

See also:

Moody’s Puts US, UK on Chopping Block (Wall Street Journal)

Moody’s Says US, UK Have to Fix Public Finances (ABC New)

US, Britain may test Aaa boundaries, Moody’s warns (MarketWatch)

Dec. 8 (Bloomberg) — Moody’s Investors Service said its top debt ratings on the U.S. and the U.K. may “test the Aaa boundaries” because their public finances are worsening in the wake of the global financial crisis.

The U.S. and U.K. have “resilient” Aaa ratings, as opposed to the “resistant” top ratings of Canada, Germany and France, analysts led by Pierre Cailleteau in London said in a report. None of the top-rated countries is “vulnerable,” or have public finances that are “stretched beyond the point of ‘no return’ to the Aaa category,” New York-based Moody’s said.

Read moreMoody’s: Top US And UK Debt Ratings May ‘Test The Aaa Boundaries’

US bank chargeoff rate exceeds Great Depression: Moody’s

And this is the Greatest Depression.


NEW YORK (Reuters) – The rate of loan charge-offs by major U.S. banks has exceeded those seen in the early years of the Great Depression as the credit crisis continues to take a toll, Moody’s Investors Service said on Monday.

Bank charge-offs — loans written off as uncollectable — have reached $116 billion year to date, or 2.9 percent of outstanding loans on an annualized basis, Moody’s said in a report. By comparison, bank charge-offs were about 2.25 percent in 1932, the third year of the Great Depression, Moody’s said.

Charge-offs climbed to $45 billion in the third quarter from $40 billion in the second quarter and $31 billion in the first, Moody’s said.

On an annualized basis, charge-offs were about 3.4 percent of outstanding loans in the third quarter, matching the Great Depression peak in 1934, Moody’s said.

Read moreUS bank chargeoff rate exceeds Great Depression: Moody’s