The official Spainish credit rating (issued by Fitch) was downgraded by 3 steps at once hitting the BBB level. This is obviously a move in right direction, as Spain is one of the countries that was highly over valuated by the leading credit rating agencies. The rating of Spain, calculated with my formula is BB, and is below the minimum investment level. So Fitch and other similar agencies have some more to change their calculations, before reaching a minimum level of reliability of their ratings.
Read more...The first step of the leftish madness in France has started. The Government decided to roll back part of the increase in retirement age, that was passed 2 years ago by the former President Nicolas Sarkozy. And it decided to do it by a very strange procedure - not by passing a law amendment, but by a Government "decree". These types of acts are very suspicious from judicial point of view. But at the moment the new government can not pass a new law, as in old parliament the Sarkozy's party has a majority, and a new election is scheduled for June 10th. So it would be better to wait until election and propose the new law in Parliament. But the Government is hurrying - may be in an effort to influence the election itself by such a populist moves.
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For an analyst that says he will not pay more than $2-3 per Facebook share it is some unusual to comment price moves between $20 and $30. Anyway I think it is a good moment to ask the crucial question when Facebook shares will reach $19. I.e. when the loss for investors from the IPO will become 50% and they will have lost half of their money.
Silvio Berlusconi - the former Italy prime minister and a leader of the parliamentary majority at the moment, is the first of EU leaders to officially use the phrase "printing money" as a "decision" for debt crisis. Up to now the money-print has happened, but under other names (1% interest, LTRO, QE, ECB buying bonds). But no one called it "money-print". This phrase was forbidden. But up to now. Today Berlusconi directly said ECB must "print" more money to put the crisis under control...
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