Fitch calls for greater support for Italy to prevent 'cataclysmic collapse' of the Euro

Thursday, January 12th 2012 - 04:17 UTC

Full article 6 comments

The European Central Bank should ramp up its buying of troubled Euro zone debt to support Italy and prevent a “cataclysmic” collapse of the Euro, David Riley the head of sovereign ratings for Fitch, said on Wednesday. Read full article

Comments

Disclaimer & comment rules

briton
France is the weakest AAA country in the euro zone
oh dear,,,,tough luck,
Jan 12th, 2012 - 08:51 pm - Link - Report abuse 0
-+
Yuleno
What does that mean.AAA
Jan 12th, 2012 - 10:21 pm - Link - Report abuse 0
-+
briton
Long-term credit ratings
Fitch Ratings' long-term credit ratings are assigned on an alphabetic scale from 'AAA' to 'D', first introduced in 1924. (Moody's also uses a similar scale, but names the categories differently.) Like S&P, Fitch also uses intermediate +/- modifiers for each category between AA and CCC (e.g., AA+, AA, AA-, A+, A, A-, BBB+, BBB, BBB-, etc.).
Investment grade
• AAA : the best quality companies, reliable and stable
• AA : quality companies, a bit higher risk than AAA
• A : economic situation can affect finance
• BBB : medium class companies, which are satisfactory at the moment
Non-investment grade
• BB : more prone to changes in the economy
• B : financial situation varies noticeably
• CCC : currently vulnerable and dependent on favorable economic conditions to meet its commitments
• CC : highly vulnerable, very speculative bonds
• C : highly vulnerable, perhaps in bankruptcy or in arrears but still continuing to pay out on obligations
• D : has defaulted on obligations and Fitch believes that it will generally default on most or all obligations
• NR : not publicly rated
[basically ]

.http://en.wikipedia.org/wiki/Fitch_Group
Jan 12th, 2012 - 10:43 pm - Link - Report abuse 0
-+
laceja
“Why not have the ECB come out and say 'We are going to cap interest rates', say 'We are not going to allow interest rates to exceed 7%' or whatever level they see is the limit?.. Why not turn the EFSF into a bank so it can borrow from the ECB so it doesn't have to go to the market?”

Nothing more than pricing fixing! The ECB was fashioned to mimic the US Federal Reserve Bank. Just another private bank, masquerading as a government entity. The absolute best thing that could happen to Europe is for the Euro to simply disappear and all those nations return to their own “sovereign” currencies. All the Euro does is reduce all nations to the lowest common denominator... Only the bankers win, because they can just print more money.

Not to fear, my ire isn't reserved only for the Euro. Although the US has allowed the Federal Reserve Bank to impose its will on the rest of the world, the Dollar hasn't really been anything like a “reserve” currency, since 2008. Smart countries should have already dumped it and started to build their gold reserves. It's only a matter of time (short time by my estimate), before the Dollar is reduced to less than the value of toilette paper.

Better for Latin America to hotly pursue its own trading block and wean itself off the Dollar and Euro.
Jan 13th, 2012 - 12:03 am - Link - Report abuse 0
-+
lsolde
@4laceja,
Tip, the Chinese Yuan will appreciate. Buy now & sell when it doubles in value.
l”ve got some.
Jan 13th, 2012 - 05:09 am - Link - Report abuse 0
-+
Yuleno
3#thanks for your post
Jan 13th, 2012 - 04:12 pm - Link - Report abuse 0
-+

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!