Downgrade Looms for France

Mike Shedlock

With the US AAA rating gone, how long can France hold its AAA rating? I suspect not long. So where will that leave the ECB attempting to put a circle around Italy? Will Germany have to backstop all of Europe?

Those are the new key questions and notice how the key question list keeps growing larger in size and significance.

France Vulnerable to Rating Cuts

Bloomberg reports AAA France May Be Vulnerable After U.S. Cut http://www.bloomberg.com/news/2011-08-0 ... -u-s-.html

The decision by Standard & Poor’s to downgrade the U.S. credit rating leaves France as the AAA country most likely to lose its top grade, some investors and economists say.

France is more expensive to insure against default than lower-rated governments including Malaysia, Thailand, Japan, Mexico, Czech Republic, the State of Texas and the U.S.

“France is not, in my view, a AAA country,â€