dagblog - Comments for "Moody's downgrades 15 major banks"

I was going to point out that

EmmaZahn — Sat, 23 Jun 2012 08:56:10 +0000

In reply to I don't think that Moody's is

I was going to point out that the parties most affected likely already knew this was coming but I'll let Salmon say it for me:

Every single downgraded bank is higher today, in a classic case of the market selling the rumor and buying on the news.

What else he says is really a must read for anyone interested in this topic. For example:

But in fact there’s more to the downgrades than that. For one thing, they more or less kill any hope that the interbank market will ever be resuscitated. It’s been moribund since 2007, especially in Europe but also in the US, and the death of the interbank market is a very important and very worrying long-term phenomenon. It makes central banks much more important, and also much riskier. What’s more, because central banks don’t lend at different rates on the basis of perceived differences in credit risk, it hurts price discovery. And then of course there’s the trillions of dollars of loans and floating-rate bonds which are priced off Libor, which is an increasingly fictional construct.

http://blogs.reuters.com/felix-salmon/2012/06/22/moodys-ratifies-interbank-mistrust/

I know little about this

Richard Day — Fri, 22 Jun 2012 20:58:55 +0000

In reply to Moody's downgrades 15 major banks

I know little about this subject. And the subject runs the world.

But depending upon Moody in order to make one's investments is kind of like depending upon the RNC to show us the way to a national Civil Rights Program; or depending upon fascist talk radio for information concerning our national course; or depending upon McDonalds to show us the way to true nutrition; or depending upon the messages of Hustler in order to find true love; or depending upon the sermons of Robertson to find the ONE TRUE GOD; or depending upon Willard to take us upon a brand new immigration policy; or depending upon reality shows to bring us to some true reality.

IT AINT GONNA HAPPEN.

Like someone said a few months ago:

Standard & Poor is neither standard nor poor.

hahahahaha

I don't think that Moody's is

Michael Maiello — Fri, 22 Jun 2012 16:42:09 +0000

In reply to Moody's downgrades 15 major banks

I don't think that Moody's is saying that these banks should be allowed to fail. I think what they're saying is this, with a nudge and a wink: "look, bond investors -- you're pricing these bonds as if there's a government guaranty and, when push comes to shove, you're probably right that developed country governments will not allow for a catastrophic bankruptcy. But, we're downgrading them because, in the event that something goes wrong, bondholders will take a haircut this time."

There is now, basically headline risk. A lot of people who never though about topics like bondholders taking haircuts before 2008, know a ton about it now. Were the U.S. government to attempt to, say, re-rescue Citigroup, the public would know in great detail what's going on. There would be no cover of confusion. There would be political consequences for any politician who made the bondholders whole first, in the midst of a new foreclosure wave or credit lockdown.\

That's pure speculation on my part, of course.

Well, bankers said they

Doctor Cleveland — Fri, 22 Jun 2012 09:55:03 +0000

In reply to Moody's downgrades 15 major banks

Well, bankers said they shouldn't be regulated, because the free market would discipline them.

Here's a very small taste of discipline. The anti-regulation types should be celebrating.

I love the way they grouped

cmaukonen — Fri, 22 Jun 2012 03:54:46 +0000

In reply to Here's something else on this

I love the way they grouped them. Degrees of horrible.

Here's something else on this

EmmaZahn — Fri, 22 Jun 2012 02:34:16 +0000

In reply to Moody's downgrades 15 major banks

Here's something else on this story.

Moody's downgrades firms with global capital markets operations | Credit Writedowns

Their list included HSBC from the Primary Dealer list as well.

Interesting indeed. OT This

cmaukonen — Fri, 22 Jun 2012 02:27:11 +0000

In reply to Looks like interesting times

Interesting indeed.

OT This is the kind of stuff I tend to pay attention to these days.

The political theater that gets so much attention is merely a kabuki dance to keep everyone else entertained. The final act of which has already been written with few (if any) re-writes allowed.

Looks like interesting times

EmmaZahn — Fri, 22 Jun 2012 02:17:41 +0000

In reply to Moody's downgrades 15 major banks

Looks like interesting times ahead. Below is a current list of the Fed 's Primary Dealers with the ones from your list highlighted. They are also Primary Dealers for just about every in Europe central bank.

Bank of Nova Scotia, New York Agency

BMO Capital Markets Corp.

BNP Paribas Securities Corp.

Barclays Capital Inc.

Cantor Fitzgerald & Co.

Citigroup Global Markets Inc.

Credit Suisse Securities (USA) LLC

Daiwa Capital Markets America Inc.

Deutsche Bank Securities Inc.

Goldman, Sachs & Co.

HSBC Securities (USA) Inc.

Jefferies & Company, Inc.

J.P. Morgan Securities LLC

Merrill Lynch, Pierce, Fenner & Smith Incorporated [assumed Bank of America's role after merger]

Mizuho Securities USA Inc.

Morgan Stanley & Co. LLC

Nomura Securities International, Inc.

RBC Capital Markets, LLC

RBS Securities Inc.

SG Americas Securities, LLC

UBS Securities LLC.

Its Word is prisoner Its

wavettore — Fri, 22 Jun 2012 02:10:01 +0000

In reply to Moody's downgrades 15 major banks

Its Word is prisoner
Its letters are hidden still inside the ink.
One line of thought and few metaphors are
here to catapult Its Portrait beyond words.

Time for Awakening

Since 9/11 it's the War on Terror
One "false flag" attack so called by error
Blair, Bush, and Israel had a Pact in store
Their next surprise is knocking at your door
A hidden vile Idea from those who want "more"
will use you and your Belief for the next World War
As "chosen people" gain while Humankind loses
Greed wins not by the swords but by the words of Moses
Daring is to tell you when, better then to tell you rhymes
could not side with either one to get ready for our times
to look beyond and past today to seek for a solution
one only hope is there for you and spells Wavevolution

...................

A new type of Revolution wins with the ultimate weapon
Your Mind
...................

This introduction is for you to expect, recognize and
put in perspective the many "surprises" that will soon
change the World and your Life.
There is no need for Prophets.

A planned chain of events has already started
under your eyes while you remain blindfolded
or perhaps too distracted to see it.

It is the secret rise of the
New World Order

For long time people have talked about one “possible" Plot.
You don't need to hear it again.
There is no more time to continue doubting it.
Instead you should know well all its phases
and also talk with others about the only alternative Solution

Many will remain skeptical in regard to the existence of this Plan in spite of what is in front of their eyes.
These people would probably like to see proofs as
letters, videotapes or confessions on Live TV.
Instead one should connect all the acquired certainties from the past events to recognize the clear Direction already well defined by this Plot.
All these circumstances should be more than enough evidence for all those who have eyes to see.

http://www.wavevolution.org/en/freethinking.html

brbdb

I expect to see some sort of

cmaukonen — Fri, 22 Jun 2012 01:56:21 +0000

In reply to Moody's downgrades 15 major banks

I expect to see some sort of a financial crisis before the elections and statements from Romney (and maybe a few republicans) that will make them look like even bigger horses asses than they already do.