Monday, December 05, 2011

No real news in the leaked S&P warning on Europe

S&P hasn't actually made a public announcement, but the article in The Financial Times based on a leaked copy of a purported imminent S&P report concerning downgrades of sovereign debt of the major European countries is actually not really much in the way of new news at all. Sure, it is negative and therefore fits the bill for traders and short-term speculators looking for negative "news" to trade off of and an excuse for "profit-taking", but I think just about everybody is already wary of the sovereign debt crisis in Europe, including its potential ramifications for even France and Germany. If anything, this may only reaffirm how out of touch the ratings agencies really are.
 
In short, the story/report doesn't really tell us anything of substance about Europe that we didn't already know.

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