Fitch cuts Japan debt rating, outlook negative

Don't say you weren't warned by yours truly.  This downgrade of Japan was long overdue.  Japan is about to enter the toilet bowl, for reasons given many times in these blogs.

http://in.reuters.com/article/2012/05/22/economy-japan-fitch-idINDEE84L06420120522?type=economicNews

Euro Plunges On Fitch Double Tap, Comments From Merkel

In another theater of the absurd example, there are analysts out there who are actually claiming they didn't see this coming:  the downgrading of Spanish and Italian sovereign debt by the credit ratings agencies.  Really? 

http://www.zerohedge.com/news/euro-plunges-fitch-double-tap-comments-merkel

http://www.zerohedge.com/news/and-spain-fitch-downgrades-spain-aa-aa-two-notch-cut-outlook-negative 

http://www.zerohedge.com/news/fitch-downgrades-italy-outlook-negative

Fed: Default would be dangerous; Fitch may cut rating

The term "riskless" has once again taken on a whole new meaning, as it did in 2008.  So is the phrase, "what is money?"

http://www.reuters.com/article/2011/06/08/us-usa-ratings-fitch-idUSTRE7573IM20110608?feedType=RSS&feedName=topNews

St. Louis Federal Reserve Bank President James Bullard told Reuters on Wednesday "the U.S. fiscal situation, if not handled correctly, could turn into a global macro shock.

Bullard's warning came just after Fitch said it would slash to "junk" the ratings on all Treasury securities, seen worldwide as a risk-free investment, if the government misses debt payments by August 15.

SP downgrades Moody's

http://blogs.telegraph.co.uk/finance/tracycorrigan/100006756/why-sp-is-worried-about-moodys-and-vice-versa/

In an ironic twist, S & P is downgrading Moody's, which signals the beginning of a mutual cannibalization frenzy among the 3 credit ratings agencies (Fitch being the other). They all enabled and perpetuated the financial Ponzi schemes by assigning AAA credit ratings on worthless, toxic mortgage-backed securities, but the government did nothing to disembowel them. They also missed on the financial collapse and insolvency of major banks. It's ironic because while the government didn't kill them off, they will do it to each other.

US could lose AAA credit rating

This threat has been articulated by this blogger a few times, despite the possibility being "unthinkable" by the mainstream financial press--at least until now. Fitch, one of the major credit ratings agencies, just issued a warning on the possibility of the US losing its AAA credit rating.

http://www.telegraph.co.uk/finance/economics/6969163/US-must-cut-spending-to-save-AAA-rating-warns-Fitch.html

Fitch Ratings has issued the starkest warning to date that the US will lose its AAA credit rating unless acts to bring the budget deficit under control, citing a spiral in debt service costs and dependence on foreign lenders.