France credit rating cut puts eurozone bail-out fund at risk

  • Posted by a hidden member.
    Log in to view his profile

    Jan 14, 2012 9:30 PM GMT
    http://www.telegraph.co.uk/finance/financialcrisis/9014491/France-credit-rating-cut-puts-eurozone-bail-out-fund-at-risk.html

    France was downgraded, alongside eight other eurozone countries, by Standard & Poor’s on fears that policy-makers are failing to get a grip on the debt crisis.

    The downgrades, officially released after the US markets closed, capped another chaotic day for the eurozone, which was already reeling from the collapse of Greek debt restructuring talks.

    The French downgrade casts a menacing shadow over Nicolas Sarkozy, the French president, who faces an election in April, as well as the French economy and its banking sector.

    It also lands a body-blow to the eurozone’s financial rescue mechanisms, starting with the European Financial Stability Facility (EFSF).

    Since France is responsible for 20.4pc of the EFSF, it is likely the “big bazooka” bail-out fund will itself lose its AAA credit rating too. Borrowing costs for the fund, and the countries it is tasked with supporting, could rise while the chances of it being leveraged from €440bn to €1 trillion are likely to be crushed.


    More here - http://www.zerohedge.com/news/everyone-hates-euro-eur-shorts-hit-new-record-high

    And here: http://www.cnbc.com/id/45989399 "S&P Cuts Credit Ratings for Nine Euro Zone Nations"
  • GQjock

    Posts: 11649

    Jan 14, 2012 9:35 PM GMT
    And to think .... Imagine how bad it would have been if they had republicans ....LOL
  • Posted by a hidden member.
    Log in to view his profile

    Jan 14, 2012 9:54 PM GMT
    GQjock saidAnd to think .... Imagine how bad it would have been if they had republicans ....LOL


    Considering that the Democrats want more of a European style democracy... it's probably too bad they don't have more Republicans. Oh the dreams of socialists continue to crumble...
  • Posted by a hidden member.
    Log in to view his profile

    Jan 14, 2012 9:58 PM GMT
    riddler78 said
    GQjock saidAnd to think .... Imagine how bad it would have been if they had republicans ....LOL


    Considering that the Democrats want more of a European style democracy... it's probably too bad they don't have more Republicans. Oh the dreams of socialists continue to crumble...
    I find it quite fascinating that the USA was downgraded first (thanks to the teaparty folks.. and the repubs who stood there and did nothing). LOL
  • Posted by a hidden member.
    Log in to view his profile

    Jan 14, 2012 10:00 PM GMT
    TropicalMark said
    riddler78 said
    GQjock saidAnd to think .... Imagine how bad it would have been if they had republicans ....LOL


    Considering that the Democrats want more of a European style democracy... it's probably too bad they don't have more Republicans. Oh the dreams of socialists continue to crumble...
    I find it quite fascinating that the USA was downgraded first (thanks to the teaparty folks.. and the repubs who stood there and did nothing). LOL


    Um not because of the tea party folks. Did you even bother to read the comments about the outlook and why it was downgraded in the first place? Sure the push to contain spending may have been the initial trigger but the absurd levels of spending and fiscal stimulus were what caused it.