Contagion Hits The Core

Last night I rattled off a few European outlook downgrades, today the Fitch Rating's Agency went right to the core, meaning not the periphery that have been all the rage over contagion (PIIGS) and downgraded the outlook of Belgium. 

Suddenly the bailers become the next potential Bailees. Of course the more stable economies in the EU are not going to appreciate being the potential target of a downgrade, thereby causing them to pay substantially more on any debt issued and potentially putting their countries in danger, al for trying to be a good neighbor. I sense a lot of animosity building in Europe.

No reaction from the EUR-after all, they have a trade in play. It'll be discounted when they're done.