Fitch Downgrades Italian And Spanish Debt Ratings! Belgium in Trouble!

• Warning!! Warning!! Major financial tsunami about to hit! Major rumors that Germany and France have started printing the Deutschmark and French Franc. The sources are credible! Germany and France know that to continue bailing out Greece and the rest of the PIIGS is suicidal. They will never get their money back! Why not just spend the bailout money directly helping their banks!
  –
• Italy and Spain are in trouble. But so is Belgium. Its debt to GDP was close to 100%. With the collapse of Dexia, it may rocket past 150% ! Belgium is toast!!! Got physical gold yet? (remarks mine)
  –
  A Dexia Depositor’s Dilemma – by Anne Jolis
  …. The Belgian government’s debts are close to 100% of 2010 GDP. Dexia’s total assets (debt, liability), meanwhile, equal more than 140% of that €352.9 billion GDP. “What if the Belgian government defaults?”
  –
  “The Belgian government can’t default! If the Belgium government defaults, every government in the euro zone defaults. You’d see the breakdown of the entire capitalist system.”
  –
• Fitch downgrades Italian and Spanish debt ratings
  By AP , http://www.telegraph.co.uk/
  The Fitch agency downgraded its sovereign credit rating for Italy and Spain today and said its long-term outlook for both countries was negative, citing high debt and poor prospects for growth.
  –
  Separately, Fitch also said it was keeping Portugal’s debt rating on watch for a possible downgrade, with a decision due by the end of the year. Portugal was the third and latest eurozone country to receive an international bailout package after Greece and Ireland.
  –
  Fellow ratings agency Moody’s warned on Friday night that it has put Belgium on watch for a possible downgrade.
  –
  The reports are a blow to Europe’s hopes of containing the debt crisis that has already seen three countries bailed out. Italy and Spain have the eurozone’s third- and fourth-largest economies and are widely considered too expensive to rescue.
  –
  Fitch downgraded Italy’s creditworthiness from AA- to A+, citing high public debt, low growth and the “politically technical and complex” solution necessary to fix Italy’s financial ills and earn back the trust of investors.
  –
  While saying Italy’s recent austerity measures improved its standing, “the initially hesitant response by the Italian government to the spread of contagion has also eroded market confidence in its capacity to effectively navigate Italy through the Eurozone crisis,” Fitch said.
  –
  The move came after Moody’s Investors Service on Tuesday downgraded Italy’s bond ratings to A2 with a negative outlook from Aa2. On September 19, Standard & Poor’s cut Italy’s long- and short-term sovereign credit ratings one notch, though its rating is still five steps above junk status.
  –
  Despite the downgrade, Fitch said Italy’s sovereign credit profile remains “relatively strong” and that its budget position compares favorably to other European countries.
  –
  Also Friday, Fitch cut Spain’s sovereign debt rating by two notches to AA- from AA+, citing increased risks from the eurozone financial crisis as well as high debt in regional governments and weakening growth prospects.
  –
  Like Italy, Fitch kept a negative outlook on Spain, but said it expected the country to remain solvent. It says that debt reduction efforts will weigh on growth and keep unemployment high. Spain currently has the eurozone’s highest jobless rate at over 20pc.
  –
  …. for the full article click here!

end