The credit ratings agency that stole Christmas

You’re a mean one, S&P. You really are a heel. You went negative on Europe as they tried to make a deal, S&P! You're a bad banana, with a greasy black peel! You're a monster, S&P! You say Europe is an empty hole. You are trying to regain respectability, after you missed the housing toll, S&P! Now you say don’t touch Europe with a thirty-nine-and-a-half foot pole!

You're a vile one, S&P! You have termites in your smile. If all of Europe is like a seasick crocodile, S&P! Given the choice between the two of you, I'd take the seasick crocodile!

You're a foul one, S&P! You're saying that Europe debt could be nasty, wasty junk! And after your announcement oil and global markets sunk, S&P! The three words that best describe your timing are as follows and I quote,

"Stink, stank, stunk"!

You're a rotter, S&P. You have put us on the spot just as Italian and Spanish bond yields were starting to drop. Now the chance of a treaty change is like a dead tomato, splotched with moldy, purple spots, S&P!

You imply Europe is an appalling dump-heap, overflowing with the most disgraceful assortment of deplorable politics imaginable, mangled-up in tangled-up knots! You nauseate me, S&P! Your obnoxious downgrade warning come at much too high of cost, and you drive a crooked hoss, S&P!

You're talk that Germany and France may be stripped of their AAA credit is just to show your boss, S&P! You're helping the global economy about the same as a toadstool sandwich, with arsenic sauce!

Ah, leave it to S&P to try to make the Eurozone’s impossible job even more impossible. Just as the market was trying to see the light at the end of the tunnel giving French President Nicolas Sarkozy and German chancellor Angel Merkel ambitious plan to rewrite the Eurozone treaty the benefit of the doubt, S&P the disgraced rating agency, once again tries to make a splash by threatening big time downgrades. Instead of a ratings agency, they now seem to be a political ratings agency and tried to make a name for it by being the agency that downgraded the USA. Now with Europe trying to come up with a viable plan to fix the dent, S&P is trying to make it harder by trying to jack up rates of debt across the Eurozone. S&P broke market confidence at least for a while after it was rumored and later confirmed that Germany, France, Netherlands, Austria, Finland and Luxembourg, the euro area’s six AAA rated countries, are now on “Credit Watch negative,” we see the results of a summit of European Union leaders on Dec. 9. Now S&P put 15 euro nations on review for possible downgrade raising the question if all of Europe is downgraded then does anyone have good credit? I mean how bad could Germany be if industrial orders grew by 5.2%, blowing away expectations?!

Europe is the key for oil even when it comes to Iran as EU leaders have determined that they cannot afford to be without Iranian oil. Reuters News reports that the, “European Union is becoming skeptical about slapping sanctions on imports of Iranian oil, diplomats and traders say, as awareness grows that the embargo could damage its own economy without doing much to undercut Iran's oil revenues. Oil accounts for 50 percent of Iranian budget revenues, and those arguing for sanctions say they can deprive Tehran of billions of dollars and derail what the West sees as Iran's attempts to build a nuclear bomb. But diplomats and oil industry insiders say Europe may calculate that even a small rise in oil prices as a result of an introduction of an EU-embargo would more than compensate Tehran for any losses from being obliged to re-route displaced supply to Asia at discounted prices.” Maybe S&P can downgrade Iran?

Weather has downgraded natural gas. Warm temperatures and the expectations for another report showing record supply, killed the technical bottom formation. How low can you go!! For oil we like to buy on breaks!

Phil Flynn is senior energy analyst for PFGBest Research and a Fox Business Network contributor. He can be reached at (800) 935-6487 or at pflynn@pfgbest.com.

About the Author
Phil Flynn

Senior energy analyst at The PRICE Futures Group and a Fox Business Network contributor. He is one of the world's leading market analysts, providing individual investors, professional traders, and institutions with up-to-the-minute investment and risk management insight into global petroleum, gasoline, and energy markets. His precise and timely forecasts have come to be in great demand by industry and media worldwide and his impressive career goes back almost three decades, gaining attention with his market calls and energetic personality as writer of The Energy Report. You can contact Phil by phone at (888) 264-5665 or by email at pflynn@pricegroup.com. Learn even more on our website at www.pricegroup.com.

 

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