Fitch finds that other countries will likely seek a Brussels bailout as Euro zone finances continue their downward spiral

Fitch affirms that the EU will not break up thereby admitting the possibility of that happening.  When the crisis first hit, there was no talk of breakup.  Now, Fitch acknowledges that possibility, while stating that it probably won't play out that way. 

Along the way, thay explicitly acknowledge that there will likely be more instances of bailout (can anyone say EFSF?).  Germany and France will continue to bailout everyone who uses the currency while the rest of the world wonders why using the Euro guarantees that you can never declare insolvency.  Someone show me that in the EU charter.  Via Fitch:
It is likely that there will be further episodes of extreme market volatility and a risk that more euro area member states (EAMS) will be forced to seek financial support from the EU and IMF. Fitch believes the euro zone will “muddle through” rather than break up in the wake of systemic sovereign debt defaults or become a fully fledged fiscal union.

...There are divergent trends in European banks. On balance, the credit outlook for banks in the region is stable, but around a quarter of bank Issuer Default Ratings (IDRs) are on Negative Outlook. The unsettled situations in Ireland, Greece, Portugal and to some extent Spain are likely to dominate rating actions in early 2011. Banks in these countries and troubled banks elsewhere in Europe are facing difficulties accessing traditional sources of market funding. Banks have become dependent on government programmes and especially on the ECB.


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