Seriously, it doesn’t get much more stupid than this:
EU FINANCIAL REGULATION CHIEF: EU COULD LOOK INTO POSSIBILITY OF SUSPENDING RATINGS ON EU COUNTRIES RECEIVING BAILOUTS
Off the wires.
There’s idiotic and then there’s really idiotic. This is the EU’s apparent response to ratings agencies saying that they will consider what amount to forcible debt swaps (that are falsely labeled “voluntary”) an act of default (they are.) Rather than have those bonds deemed ineligible for pledging to the ECB and similar programs, the Europeans are now willing to simply say that they will take defaulted instruments by literally refusing to accept an objective determination that the default occurred!
The market, of course, loves this – it was good for an immediate few-point ramp in the S&P and DOW.
Can I ask when (and why) it became bullish to not only lie, but do so openly and accept defaulted bonds as collateral?
If this sort of desperation move – a clear statement that the ECB and EU banks are insolvent and now must resort to open and flagrant lies – has become bullish news then our international banking and monetary system is literally one mosquito breath away from utter and complete collapse.
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