[Vemnagelignc]

"Moody's To Junk Spanish Banking System In Hours

Nearly two weeks ago we penned "These Three Spanish Banks Will Be Downgraded Tomorrow" which showed which banks had a rating higher than the sovereign following Moody's long overdue Spanish downgrade, and thus were about to be downgraded by many notches. Today, after a ridiculously long delay whose only purpose was to buy time, Moody's is about to junk virtually the entire Spanish banking sector, as was widely expected.The downgrade is expected to happen within hours.
From Expansion (google translated)

After cutting the rating of Baa3 and Spain to threaten to put Spanish debt at the level of junk bond no later than 30 days, has reviewed the notes of all banks. "We have reported a reduction of two or three notches (steps) to almost everyone. Do not look at individual financial statements of each entity. Do not discriminate, "added the sources.

And is that the sector is particularly annoying because automatically cut the rating of the bank once they do the same with the state. The statement, as indicated by financial sources will be announced after twelve hours have told the entities, ie, probably after 23:00 tonight.

The biggest problem is that many entities will enter into the very undesirable group of fallen angels. Typically, banks with a rating lower than the state and how it is now just one step from losing investment grade, most of the financial sector will receive a rating of junk bond. Possibly, only the big banks such as Santander, BBVA or get rid CaixaBank will fall to that level.

This is the third hit Spanish banks received in just over a month. Moody's has already cut the rating of several entities on 17 May. Downgraded the debt of 16 Spanish companies between one and three steps, also as a result of cutting Spanish debt rating a few days.

Of course, since no Spanish banks have access to the non-ECB mediated market, this move is largely symbolic but further cements the country's status as financial system pariah and the next Greece."


The translation is a bit garbled. Harvey Organ has about 10,000 words (literally) on the subject in his Tuesday post @
http://harveyorgan.blogspot.com/


The term "Lehman Moment" was coined to describe the situation when it became obvious system wide that the US banking sector was about to become insolvent because of credit derivative losses related to junk mortgage backed securities.

The EU version of the Lehman Moment is when French, German, English, and American banks become additionally insolvent because of credit derivative losses related to junk sovereign debt, which is a result of credit derivative losses related to junk mortgage backed securities.


And that's where we are now. Spanish debt is junk, and every bank that has Spanish debt will have to update their books accordingly. Of course, that will threaten their survival. In order for the heart of the system - the US, England, Germany, and maybe France (the biggest nations with the most banks) - to survive, they will have to print $Trillions.

The ballpark number that is used in King World News interviews with various senior analysts with good insight into the worldwide banking system analysts is $5 Trillion.


In the US, they didn't announce the bailouts until the perilous state of AIG et al became obvious. While the official announcement was a QE of about $300 Billion, the Fed's balance sheet actually increased about $2 Trillion, depending on which money supply chart you look at.

I think that is coming next. They will announce QE-EU and the number will be north of $1 Trillion, because nothing else will pacify the banking system - that is, take them out of the panic mode.


I think what we are seeing is the Banksters slowly letting out the fact that, at this stage of the game, what happens is -
A/ Scary moment when the bullshit is stripped away & the insolvency of the banks is revealed, and
B/ An EU-wide version of money-printing is started, and it will become worldwide - China & the US will get join the parade.

Lehman Moment x 10.

For the US, the net effect of the Lehman, Washington Mutual, Merrilly Lunch etc. collapses was the collapse of the S&P 500 to the infamous 666 in March 2009.

Followed by the initiation of QE1, which was formally announced on March 18, 2009. On that day, Gold jacked up about 8%, from $880 to $960. The closing indices showed a smaller increase of 7%.




I think it is safe to say, history will 'rhyme'. Given the amount of US $ that have been printed, and the related devaluation of the US $, S&P 1333 in 2012 (that's about where it is today) is comparable to S&P 666. The US $ has lost about half its value since March 2009, and the S&P has basically treaded water.

All covered up with the dark black magic of Jew Bankster accounting, reported on by American media.

So we see a sharp fall in the US stock market indices, followed by big "Fed / EU to the rescue" type announcements of money creation to offset banking system losses.

[Cgnebksb]

Some real grist for the mill there, Gunny. Thanks. That $5T seems more than a bit low when European "legal leverage" has no cap. Probably would have been better written with a "$5T for now" kind of characterization, yes?


beefsteak

[Piediahef]

how many more months do we have before the melt down starts all over the world . it maybe closer then we all would like to think

[poRmawayncmop]

how many more months do we have before the melt down starts all over the world . it maybe closer then we all would like to think

Already happening... it's just that most people haven't noticed yet.

[bumxumer]

Already happening... it's just that most people haven't noticed yet.

Nothing is happening yet.

The fun begins when the grocery stores run out of food and the gas stations run out of fuel.

[poRmawayncmop]

Nothing is happening yet.

The fun begins when the grocery stores run out of food and the gas stations run out of fuel.

Agreed... but Mick was asking when it would start melting down, not when the harsh effects would be felt.

[Piediahef]

i am talking about a full blowed melt down to were nothing will buy a loaf of bread

[poRmawayncmop]

i am talking about a full blowed melt down to were nothing will buy a loaf of bread

Ahhh... Zimbabwe.

Soon enough.

[nerkvcbtre]

Spain looks like a final lynch pin to the entire continent for technocratic Parliament replacements & death of Democracy.

France and Germany already being compromised.

[Vemnagelignc]

all those bankers and their brilliant credit default insurance policies.

i would love to have the job of mapping out the entire web of credit default insurance. it would probably have to be done in 3D.

but, by the time i was done, it would have collapsed. the model would never catch up to the reality.

plus i would not get honest inputs from most Banksters.

easier to just go fishing.