Breaking: Moody's Set to Announce Global Banking Downgrade!!!!!!

The Plunge Protection team is going to have their collective hands full at tomorrow's opening bell with this news.

It could be one serious bloodbath tomorrow. Keep your eyes peeled towards the overseas market performances between now and 7:30am EST. If you see tons of red, then strap in folks. It's probably going to be ugly!

reply to post by sealing


Yes Exxon as are all companies are owned by banks, the banks that set up their initial capital and investments unless they move onto to larger banks which most multi-billion corporations do.

Do you understand any of this? If not, I am not about to go giving investment/corporation lessons to someone with seemingly little knowledge about how corporations are set up!

Of course the banks are on the boards of the major companies! The banks want to make sure that the company is profiting, even in the case of the world's most valuable corporation. They have oversight from both the banks and the federal government on their board of directors. Because as we all know, what Exxon does affects the marketplace greatly! They have mutual interests.

My point about Exxon not being a bank was in part your fault because you didn't really state your post very clearly. I thought you were talking about the context of the banks. Not Exxon itself! But I do understand the point you made, you should have cleared it up.

reply to post by Hessling


BOA up, www.marketwatch.com...

GS up, www.marketwatch.com...

Originally posted by earthling42
reply to post by Hessling

 

BOA up, www.marketwatch.com...

GS up, www.marketwatch.com...

Somebody joked on CNBC's website that all this bad news would somehow get spun into "Wow! What a buying opportunity!".

It appears someone at the brokerages is quite busy on the old keyboard. Woot! Look at those billions FLY!!!!!

Time will tell.

This could be a move to get further consolidation of banks.

If they "create" a "crisis", then some banks and firms would be exposed to a "bankruptcy" illusion.

That would clear the way for a white horse savior to take over.

Something like that happened in 2007 / 2008.

Remember that most financial "assets" are on paper only and may not actually exist as "hard" assets.

Edit to Add:

Competitive Changes

The downgrades may affect the competitive landscape in derivatives that aren’t centrally cleared, a business that provides about 15 percent of the industry’s trading revenue, Kinner Lakhani, a Citigroup Inc. (C) analyst, wrote in an April 30 note. Banks with the largest cuts may lose revenue from such long-term derivatives, Charles Peabody, an analyst with Portales Partners LLC, said in a June 4 interview on the “Bloomberg Surveillance” radio program.

“Right now there are a lot of internal bank policies that if you’re doing a longer-term structured derivative, you want the counterparty to be A-rated or above,” said David Konrad, an analyst at KBW Inc. in New York. Because Moody’s is downgrading the entire banking industry rather than one or two firms, “a lot of those policies may be rewritten over time.”

A three-level cut for Morgan Stanley (MS) could cost it $400 million in annual trading revenue from those types of derivative deals, estimated Brad Hintz, an analyst at Sanford C. Bernstein & Co., before Moody’s released its decisions.

source

reply to post by xuenchen


Great addition xuenchen. Do you think this is the beginning of the great depression 2.0? And I don't say that lightly.

Originally posted by jjf3rd77
reply to post by xuenchen

 

Great addition xuenchen. Do you think this is the beginning of the great depression 2.0? And I don't say that lightly.

edit on 21-6-2012 by jjf3rd77 because: (no reason given)

Of course that is possible !!

The pattern is similar to what we saw in 2007.

This time will be much worse.

The U.S. and E.U. are in worse financial shape that in 2007.

I say it's a financial consolidation underway in earnest.

A few "weaker" (on paper) institutions will be merged with the "stronger" ones.

The mega banks become super mega banks.

and remember it's possible many of these institutions are co-owned (as major stock holders) by many of the same investor institutions.
those are the guys probably behind the whole scheme.

reply to post by xuenchen


Thanks for that info. I started following politics after all that happened lolz! and after Obama got elected. SO I was not keeping a close eye on these things.

We'll see what happens tomorrow in the market place...Not very good news. I have only seen the dow drop maybe 300 points ever since I started following it. Will it drop 400 maybe 500 points in one day? Is that possible

Originally posted by jjf3rd77
reply to post by xuenchen

 

Thanks for that info. I started following politics after all that happened lolz! and after Obama got elected. SO I was not keeping a close eye on these things.

We'll see what happens tomorrow in the market place...Not very good news. I have only seen the dow drop maybe 300 points ever since I started following it. Will it drop 400 maybe 500 points in one day? Is that possible

Anything can happen with the DOW

The Biggest One-Day Declines in the Dow Jones Industrial Average

Originally posted by GD21D
JP Morgan, Goldman Sachs, Citibank, BOA, and Morgan Stanley are all looking to be affected by this. It would be interesting to have someone with economic expertise comment on the possible fallout of a downgrade, and how much affect it will have on the global economy, if any. Once again, it looks as if the wheels are coming off. Anyone ever hear the term CTD or circling the drain?

edit on 21-6-2012 by GD21D because: (no reason given)

While the rest of the world is working on bricks and mortar, and a return to supply and demand, forging trade agreements and repairing and reconstructing trade routes after Iraq and Afghanistan, since apparently those are over, that means global economic opportunity after any war zone there is opportunity.

But the banking crisis from during the war well you know that always happens when people have to pay for war.
They usually recover fairly quickly after capitalism properly returns.

So since rapid growth and inflation is not really good for the global economy, slow growth and free enterprise and free markets and supply and demand, is what makes people prosperous.

So the global economy is just readjusting itself as real estate levels out.

Originally posted by GD21D
JP Morgan, Goldman Sachs, Citibank, BOA, and Morgan Stanley are all looking to be affected by this. It would be interesting to have someone with economic expertise comment on the possible fallout of a downgrade, and how much affect it will have on the global economy, if any. Once again, it looks as if the wheels are coming off. Anyone ever hear the term CTD or circling the drain?

edit on 21-6-2012 by GD21D because: (no reason given)

Means they have to come up with some quick cash.....and don't be surprised that the FED starts QE3. (and until they do, expect the DOW to free fall)

Morgan Stanley CEO James Gorman said June 12 it would be “somewhat stunning” if his firm was cut three levels given the bank’s increased capital and liquidity. Goldman Sachs CFO David Viniar has said that he and other executives “strongly disagree” with Moody’s approach.

I realize that they can hardly say "yeah, understandable"...but really...nobody is surprised, it really stretches a person's willing suspension of disbelief to think that those two are surprised.

THIS IS PHASE TWO.

This now allows them to put up interest rates, which they know will force a great many people into foreclosure.

The powers that be then become extremely wealthy by buying properties at pennies on the pound and becoming huge land owners.

As in the 30's it's another huge transfer of wealth away from the masses into the hands of a small minority.

And it ties up with the Olympics which does the same thing. We pay for it all, and the sponsors, etc pay the olympic committee.

And all of the money spent goes to private businesses.

Yes, we're being royally ripped yet again.

With Moody's recent record in this business, I would rather see them take a downgrade.
Until then, I don't care what they say about someone elses' stock, their performance or anything else for that matter.

reply to post by jjf3rd77

How about you two kiss and make up so the rest of us can get on with discussing the topic properly? For what it's worth you acted like an arrogant prick with your dismissive attitude to sealing's post. Get over yourself.

No worry, we have the FED. They were given all the power to keep this from happening right?

The timing of this is interesting. Summer Solstice, here, have some doom.

Hello QE3

Oh and I got a good from jjfffwhatever not knowing anything about financials but knowing romney will fix it

reply to post by Wide-Eyes


Softly sliding towards the dark side where death dwells.
But don't be afraid, out of death, life comes.

It would be really something if the solstice has a meaning in this

Originally posted by Hessling
The Plunge Protection team is going to have their collective hands full at tomorrow's opening bell with this news.

It could be one serious bloodbath tomorrow. Keep your eyes peeled towards the overseas market performances between now and 7:30am EST. If you see tons of red, then strap in folks. It's probably going to be ugly!

Here is a point of reference for you, as of 7am EST, Friday June 22:

FTSE (UK) -44.81 (trending down currently)
DAX Index (Germany) -44.66 (trending down currently)
CAC 40 (France) -14.48 (trending down currently)
The 3 above are bouncing all over the place currently, so by the time I post this it is very likely these numbers will have changed by a good deal.

Euronext (Pan-Europe Exchange) -2.79 (trending up currently)
IBEX (Spain) +88.30 (Does not seem possible since they are in trouble?)
SMSI (Spain) +7.77 (See above)
FTSEMIB (Italy) +66.86 (Does not seem possible since they are in trouble?)
FTSE Italia All Share Index (Italy) +22.94 (See above)


Nikkei (Japan) -25.72
Hang Seng (China) -269.49
Shanghai Composite (China) -32.00

Light Sweet Crude @ $78.72 (trending up currently)
Brent Crude @ $89.11 (trending up currently)

Currently on the US Markets in after hours trading the sectors are as follows:
Financials, Telecoms and Utilities are trending up and in the positive
Energy, Basic Materials, Industrials, Cyclical Goods & Services, Non-Cyclical Goods & Services, Healthcare and Technologies are trending down and in the negative.
The sectors listed above are moving relatively quickly at the moment and may have changed by the time I post this as I've been watching since 5:30am EST and have moved at a relatively quick pace thus far.

All info can be found on the Reuters website that I monitor on a daily basis and can be found at the following link: Reuters Global Market Data

In the above link, in the upper left hand side of the page, next to "REUTERS" you will see a drop down box that says "Edition" and you can choose from various markets to look at. You can use translate on your tool bar to translate the pages that are in foreign languages.

Hope this helps!