BREAKING NEWS: Fannie and Freddie Downgraded, France Will Be Downgraded, Munis Getting Hammered ... States Will Be Next
As I noted yesterday, munis will get hammered by the credit downgrade, and France may soon lose its AAA credit.
http://www.globalresearch.ca/index.php? ... &aid=25934
Less than 12 hours later, munis are getting pounded by downgrades.
France In Trouble
French credit default swaps are soaring.
Here's a summary courtesy of Business Insider:
For background on the importance of credit default swaps as an economic indicator, see this.
Fannie, Freddie and Clearinghouses Hit
S&P just downgraded Fannie and Freddie.
In addition, S&P downgraded major clearinghouses including Options Clearing, National Securities Clearing and DTCC.
All 3 companies are major clearinghouses for over-the-counter derivatives, as well as other types of financial instruments.
Next Up ... States?
As I reported last month, the real danger is entire states getting downgraded.
Moody's has warned against 5 states in particular:
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