France Loses AAA Credit Rating

It has been a common theme here at the Fundamental View over the past year or so it seems. Almost a regular dosage of news coming out of Europe. This is because Europe as we know it, is soon on the brink of going back to the way Europe once was. Individual nations with their own monetary policies and decision making. We cannot be ignorant of the fact that the Eurozone has been a failed experiment from day one. It was doomed to fail when nations like Greece and Italy ha to fudge their books to even gain entry into the Union. Perhaps the biggest “tell” was England’s ‘no thank you’ refusal to join the zone.

Markets today were rocked on news that S&P will downgrade several euro-region countries. The fact that JP Morgan Chase had revenue that was 20% less than last year didn’t help set the tone but the real damage to the markets was done when the rumours of further downgrades broke.

Well the first one has just hit the wires. France has lost its AAA credit rating from S&P. Expect more to follow.

Europe has done absolutely nothing but kick the can down the road to try to fix their disaster and unfortunately, the rot runs so deep it will never fix it. I sit here counting the days when the Euro will cease to exist as we know it and Germany says “Fick dich!” to the rest of the nations currently dragging it, and its taxpayers down into the abyss.