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Moody's Downgrades France


sport02

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Sep 25, 2010
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Don't think anyone expected this today. S&P was first to act, now Moody's.

Linda Yueh ‏@lindayueh
1st S&P now Moody's: #France downgraded from AAA, outlook remains negative: Long-term economic growth outlook negatively...
zerohedge ‏@zerohedge
France weakness: "gradual, sustained loss of competitiveness and the long-standing rigidities of its labour, goods & service markets" Moodys
 

Cassandra Syndrome

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Moody's downgrades France, no longer Triple A

News just broke 10 minutes ago. It appears President Hollande's Socialist Utopia vision isn't going to plan, what with real wealth creators exiting by the planeload, coupled with the crippling total debt and unsustainable social model France possesses.

After hours shots fired, with Moody's hitting the long overdue one notch gong on France:

MOODY'S DOWNGRADES FRANCE'S GOVT BOND RATING TO Aa1 FROM Aaa

FRANCE MAINTAINS NEGATIVE OUTLOOK BY MOODY'S
One Fewer In The AAA Club: Moody's Downgrades FrAAnce From AAA To Aa1 | ZeroHedge
 

Hewson

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On a day when the markets were back in recovery mode.

How peculiar. How predictable.
 

southwestkerry

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so much for super tax.
 

sport02

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Owen Callan ‏@OwenCallan
The Economist are obviously the big winner of the #France downgrade by Moody's tonight...impeccable timing...

From two days ago.
The time-bomb at the heart of Europe
THE threat of the euro’s collapse has abated for the moment, but putting the single currency right will involve years of pain. The pressure for reform and budget cuts is fiercest in Greece, Portugal, Spain and Italy, which all saw mass strikes and clashes with police this week (see article). But ahead looms a bigger problem that could dwarf any of these: France.

http://www.google.ie/url?sa=t&rct=j&q=france the economsit&source=web&cd=1&cad=rja&ved=0CC4QFjAA&url=http://www.economist.com/news/leaders/21566640-why-france-could-become-biggest-danger-europes-single-currency-time-bomb-heart&ei=Y7KqUJXROIbBhAfc9oHoAg&usg=AFQjCNGlsRIJU85KI-M42s0dUtrhkDhSlw
 

feedmelies

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Let's hope Schauble goes ahead with his plans then.

The French also need somebody else to manage their economy for them, it seems.
 

Cassandra Syndrome

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Ratings agencies are like FF, utterly irrelevant.
Except of course to those punters who are supposed to buy the ESM €500 Billion worth of bonds, which apparently is large enough in this Alice in Wonderland universe to cover €5 Trillion of toxic Eurozone debt.
 

greenwithirony

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But given that France's economy is in many respects in better shape than the UK's, & it has a fraction of the combined public & private debt of the UK, why does it get a downgrade & not the UK? Is it purely because of the Euro?

And before anybody starts talking about France's exposure to Greek or other Eurozone debt, just remember that British banks' exposure to ours is greater than all of Greece's debt.

EZ_BNKEXP0611_SB.swf
 

cyberianpan

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And not alone does Socialist France want to set their own silly tax policies....they want to set ours too !
 

Neutron

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On a plus side we can soon start lending money to France at a cheaper rate!
 

greenwithirony

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Except of course to those punters who are supposed to buy the ESM €500 Billion worth of bonds, which apparently is large enough in this Alice in Wonderland universe to cover €5 Trillion of toxic Eurozone debt.
Perhaps, but they are utterly shlt at their job. How were they all rating sub-prime etc before the crash?

Roubini has slammed the whole corrupt system calling for ratings agencies to be reformed so that the issuers of debt are no longer the interested parties paying for their ratings. Why hasn't this happened already?
 
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