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

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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

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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

v-for-vendetta

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.

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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.


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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

Moody’s cuts California’s credit rating below A, may cut more

The rating firm warns that the risk is rising that the state could have trouble paying its bondholders if the budget stalemate in Sacramento doesn’t end soon.

Two out of three major bond-rating firms now agree: California’s credit grade should begin with a B — a dismal comment on the state’s finances.

Moody’s Investors Service on Tuesday cut the state’s debt rating two notches, to Baa1 from A2, warning that the risk was rising that California could have trouble paying its bondholders if the budget stalemate in Sacramento didn’t end soon.

The firm said the state remained on its “watchlist” for further downgrades.

Moody’s Baa1 rating is just three notches above the level at which California’s $59 billion in general obligation bonds would be considered “junk,” or no longer investment-grade in quality. Next would be Baa2, then Baa3, then the junk rating of Ba.

Read moreMoody’s cuts California’s credit rating below A, may cut more

California’s credit rating may be cut several levels: Moody’s

June 19 (Bloomberg) — California’s credit rating, already the lowest among U.S. states, may be cut several levels by Moody’s Investors Service as government leaders seek ways to eliminate a $24 billion budget deficit.

The move would affect $72 billion of debt, Moody’s said in a statement today. California’s full faith and credit pledge is rated A2 by Moody’s, five steps above high-yield, high-risk status, or junk.

Related articles:
Judgment Day: Broke California Faces Shutdown
California nears financial meltdown as revenues tumble

A downgrade may increase the state’s borrowing cost and raise the yield paid to investors on its bonds. Standard & Poor’s put California on watch for a possible reduction earlier this week, and Fitch Ratings did the same thing May 29. The rating companies cited the most-populous state’s deficit — amounting to more than 20 percent of the general fund — and lawmakers’ inability to agree on how to close the gap.

“If the Legislature does not take action quickly, the state’s cash situation will deteriorate to the point where the controller will have to delay most non-priority payments in July,” Moody’s said in a report today. “Lack of action could result in a multi-notch downgrade.”

Read moreCalifornia’s credit rating may be cut several levels: Moody’s