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S&P takes various rating actions on Spanish banks
Reuters ^ | 5/25/12

Posted on 05/25/2012 10:25:59 AM PDT by Kartographer

Standard & Poor's Ratings Services today said it has lowered its ratings on five Spain-based financial institutions, affirmed the ratings on nine, and maintained the ratings on five on CreditWatch with negative implications (see Ratings List).

We have also revised down our assessments of the stand-alone credit profiles (SACPs) of six financial institutions, with revisions ranging from one to

(Excerpt) Read more at ...

TOPICS: Business/Economy; Foreign Affairs; Front Page News
And so the monetary conflagration of Europe grows. S&P now rates the recently nationalized Bankia is junk, what does that imply about Spain?
1 posted on 05/25/2012 10:26:03 AM PDT by Kartographer
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To: Kartographer

Is this bad?

2 posted on 05/25/2012 10:39:04 AM PDT by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: Kartographer

Spain is worse off than Greece, in many respects..

They have districts that want to break away from Spain already, and they destroyed the manufacturing base for “the Green Utopia!” of outrageously expensive energy and poverty.

25% unemployment, civil unrest just beneath the surface, and foreign powers nationalizing it’s industries overseas, without the slightest fear of retaliation.

And they don’t have the ginned up race hatreds we have here. You are looking at America’s future, folks, if we don’t wake the hell up by November.

3 posted on 05/25/2012 10:55:57 AM PDT by tcrlaf (Election 2012: THE RAPTURE OF THE DEMOCRATS)
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To: tcrlaf; driftdiver

tcrlaf nails IT!

4 posted on 05/25/2012 11:30:29 AM PDT by Kartographer ("We mutually pledge to each other our lives, our fortunes and our sacred honor.")
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To: tcrlaf

All exactly true, but for two teensy-weensy details:

First, Spain did a good job at paying down *sovereign* (ie, public) debt through the last decade. They took fire and tongs to public employee payrolls and pensions/retirement schemes, raising ages of eligibility, etc. They did a good job there, better than most in Europe.

Sadly, their economy (like ours) went on a housing bubble explosion. They have a housing bubble that makes ours look like a popcorn fart in a hurricane. So their banks have huge “private sector” debt.

Who holds Spain’s debt?

Germany, France, UK and US, in order of impact.

Right now, Spain is in a position to sink the banks of Germany, France (and perhaps a couple in Belgium), cause the UK pain and ruffle some feathers here in the US.

Take down the German banks and you take down the ECB and the Euro. The French situation is looking more dire by the day, only the Germans stand between the current situation and chaos. Every day that goes by, the Frogs are pleading, demanding, begging, crying, stamping their feet and getting seriously silly as they want the Germans to inflate the currency (the Euro) to print money the way we are to get these spendthrifts out of hock.

The Germans want nothing to do with this idea. They remember the last time they had rampant inflation.

The French should, too.

5 posted on 05/25/2012 3:02:38 PM PDT by NVDave
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To: NVDave

Spain went bonkers on housing and green energy.

They are holders of Greek debt.

Their debt is held by the ECB and the IMF (the US taxpayer)

Now the Spanish govt is nationalizing the banks to grab up cash to pay off the debts. Problem is that there is not enough money to pay it off.

So, ask for more debt.

Like the commercial years ago where a guy explains why he buys cocaine, so he can work more hours, so he can make more money, so he can buy more cocaine, so he can work more hours, so he can make more money, so he can buy more cocaine......

Eventually, the music will stop and the piper will have to be paid. It will be us that gets stuck with the bill.

6 posted on 05/25/2012 8:08:17 PM PDT by Texas resident (November 6 - Vote Against obama)
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