OT:
Here is (one) German view on the S & P downgrade. S&P is part of McGrahill (Goldman Sachs owns 5.7%);
Geithner, Paulson...
I thought it's kind of "refreshing" reading a piece not made by the media "Made in USA"
Europe's top credit rating at risk with an American eye 12/07/2011 · The rating agency Standard & Poor's has placed the credit of € 15 states of the zone under observation. The action has political significance: S & P calls for the printing press. Does the agency on the crisis summit heard?
By Holger Steltzner
Article Pictures (2) Reader Reviews (58)
© Bernd Helfert
The U.S. rating agency Standard & Poor's, Europe is on the red list. The creditworthiness of Germany and France and other countries € 13 is threatened, a likely recession. The monetary union is facing a systemic crisis of confidence, which eats into the core of the euro area. Finland, the Netherlands, Germany - no one is safe - Standard & Poor's is set just before the Euro-crisis peak. This suggests high waves. European politicians react with a mixture of anger and serenity, some people enough about conspiracy theories. Noteworthy is that hardly anyone upset about the questionable information policy of the agency from which information for the third time in advance are a small part flowed from market participants, could make it good business at the expense of later Informed.
The economic and political reasons for the threatened downgrading of credit ratings are also not a surprise as the large number of affected borrowers. As a result, Standard & Poor's follows the decisions of investors, beyond the € increasingly trust. Leaps and bounds (€-Crisis Fund) or insidious (bond purchases and Balance of Payments ECB) increases the liability of the (still) stable northern countries for debt countries, especially in the south of the monetary union. Including the credit rating suffers even the best borrowers. The calm response to the verdict of the markets, Standard & Poor's shows again, ratings are no early warning system, but serve as a late Warner.
S & P swings to the political actor in The action has political significance. The Agency is now with her sharp criticism because they want to enforce decisions of the European summit on the crisis in their favor. So it stands out on its role as a credit investigator and also swings to the actor, on the decision-maker. Standard & Poor's takes up all claim to speak on behalf of investors that the rating decision must often follow, for prudential reasons, which could question the legislature quietly once. However, the Agency carries no political responsibility. She also has no claim to sole representation for the market. Standard & Poor's is an agency of the United States, with the view through the goggles American countries and graded companies and represents the interests of Wall Street here.
This is evidenced by the list of demands from Standard & Poor's. He is imbued with the American idea of ??being able at will to create growth with cheap money. Among the sustained collateral damage of such a policy but are always larger bubbles, the descent of the real economy and a bloated financial sector. However, the reference is from continental Europe on long-term beneficial effects of structural reforms for the competitiveness of a hearing, if desired by market participants should be satisfied immediately.
 © dpa
Standard & Poor's requires the European Central Bank monetary policy on the American model. Regardless of the legal situation (prohibition of state financing by the central bank) and without consideration of the mandate (price stability as a goal) is to limit the ECB buying government bonds. Those who argue so, the verdict is not the cares of the Federal Constitutional Court.
As many now want to fire up the printing presses rescue Europeans also as a means of last election, at the crisis summit might be some way for this. If the right not to be broken open with € bonds or bond purchases by the ECB should remain after the trial of the detour financing of the International Monetary Fund nor the old proposal for a banking license for the euro-crisis fund. This could make for a motion on refinancing, which could correspond to the Monetary Policy Council by majority vote against the federal bench. Then the crisis fund could buy up all the government bonds on the market and submit as collateral for refinancing with the ECB. Actually financed the Fed then the states - but not formal. So you could take the debtor Italy from the market, which of course made every incentive to continue sound financial management and the ECB's credibility would be destroyed.
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Through the fund purchases the bank crisis may soon even falter in the balance sheet of the ECB were at high risk of loss, which would be offset by profits from the printing of money. By then, the Fed could skim through the bond purchases into circulation not more liquidity, the ECB would have lost all confidence. At the end would be the massive purchase of government bonds, not a solution to the debt crisis, but the accelerated breakdown of the euro monetary system due to inflation. Before the summit, the proposal is "banking license" re-emerged from obscurity. Hopefully he is not on the table on Friday.
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