Fitch must have been reading my previous post on their Italian GDP contraction forecast (see quote below), except their forecast is still hogwash with an estimate of GDP contraction for Spain in 2020 of only 3.9%. If these rating agencies are so spot on why did Australia which is far less impacted by the virus (so far) announce the job keeper package and total support for the Australian economy equal to 16.4% of GDP? These rating agencies are just as invested in keeping this asset bubble alive as everyone else. The markets still haven't paid the piper and the hubris and moral hazard doesn't abate even in the face of all the facts. The next fall is going to be even more brutal than the last. QE to infinite won't work to hold prices of everything up. In the end the only prices that will be rising are for the things we really need like food.Esh
Coronavirus Leads to Rating Actions on 19 Spanish Banking Groups
"However, with so much depending on the extent and duration of the coronavirus outbreak, there is material downside risk to these economic forecasts. A plausible downside case, including a second wave of infections and a longer lockdown period, would see an even larger decline in output in 2020 and a weaker recovery in 2021. As a result of the challenges, Fitch has changed the Outlook of the operating environment for banks operating in Spain to Negative from Stable."
