It is refreshing to see that the SEC has taken a much needed break from its daily escapades into midgetporn.xxx and is focusing on what is truly important, such as barring outspoken rating agency Egan-Jones from rating the US and other governments. From the SEC: "EJR and Egan made a settlement offer that the Commission determined to accept.
By Colin Lokey:You have to love 'underdog' ratings agency Egan-Jones. While the DBRSs of the world are busy keeping Spain's banks afloat by making sure their collateral stays eligible, Egan-Jones spends its time issuing ratings that actually mean something.
In a common sense move, Egan-Jones cuts Austrian, Dutch sovereign ratings.
Credit rating agency Egan-Jones lowered Austria's rating to A from A-plus and cut the rating on the Netherlands to A from AA-minus. Both ratings have a negative watch.
Northern European countries will absorb the cost of shoring up ailing neighbors, Egan-Jones said in separate statements on each rating action.
It's not just Germany expressing reservations about the ECB's plan to "Save the Euro". Spain, Italy, and Germany all have concerns about the plan launched last week by ECB president Mario Draghi.
By Mike Williams:
You might not know it from looking at the U.S. stock market, but Spain and Italy are the closest they've been to outright defaults since the EU debt-crisis began.On Tuesday morning, Spanish 10-year yields were as high as 7.65%, while Italian 10 years were trading at 6.47%. Far more telling was the action in shorter-term debt, as Spain's 2-year bond yields soared to 6.65%, and Italy's comparable bond yields rose over 6% to 4.93%.