|Another Deteriorating Spanish Auction, Another Moody's Downgrade, More German Dissent, More Failed Banks|
|ZeroHedge, 01/07/2010 (traduire en Français )|
Earlier today, Spain issued €3.5 billion in 5 year bonds with terms markedly worse than even the most recent prior auction. The yield came in at 3.657%, up from 3.532% previously, with a dramatic slide in the Bid To Cover, which plunged from 2.35 in May to just 1.7. And to guarantee that the next bond auction will barely clear 1.0 is Moody's, which just downgraded 5 Spanish regions, Castilla-y-Leon, Extremadura, Madrid and Murcia to Aa2 from Aa1 and Castilla-La-Mancha to Aa3 from Aa2. This is even as the rater is about to cut Spain by about 3-5 notches to the single A category if not lower.
L'Allemagne se torche avec les stress tests :
Elsewhere, Germany once again threw Europe into a general state of discord by announcing that it does supports banks' refusal of full stress test releases. As Market News reports, "Bundesbank President Axel Weber is supporting German banks in their opposition of a complete and uncontrolled disclosure of stress tests, German business daily Financial Times Deutschland (FTD) reported Thursday citing sources. Weber promoted the partial release of stress test results. Yet, he opposed the plan to let the European association of financial supervisors CEBS decide alone how much of the stress tests will be released, FTD said." This is in stark contrast with the Geithner approach of complete doctoring and fudging of even the stress test framework, to make sure no banks ever fail the stress tests. Once again Germany is showing Tiny Tim the middle finger.
Des banques allemandes en faillite :
And making matters even worse, was a report by the FT that Germany bank rescue fund Soffin could be asked to help two to four lenders. As Reuters further reported, "Bundesbank Vice-President Franz-Christoph Zeitler said the responsibility for such articles lay with those who wrote them, adding that he would not confirm or deny details of Wednesday's meeting with senior German bankers on stress tests for lenders.
"At the moment, there is no reason to make further statements related to individual institutions," Zeitler told Reuters on the sidelines of the a symposium in Frankfurt."
Bref, quand les USA font dans l'impressionnisme, à grandes touches de couleurs, c'est dur de se faire une idée sur l'Europe, avec son tableau pointilliste. Mais bon, ce qui compte, ce sont les couleurs. Et là, on est tout de même plus dans les teintes de gris et de noir...