Germany-Contagion

Not that it should matter as the EU is moving to make rating agencies irrelevant in actual law, but I'm sure this is not going to be well received in Germany where this week Merkel has made numerous statements that basically sound like, "We're sick of taking care of you" to the other EU countries.

I suppose if there was a time to foster that sentiment, now would be it and Egan Jones is the mechanism by which German's can see the effects of "contagion", something I would think most Germans never thought would reach their borders.
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This afternoon, my favorite rating agancy by far (they aren't scared to be first through the door), Egan Jones, downgraded Germany from AA- to A+.

To rub salt in the wound, just check out EJ's reasoning, I'm sure the PIIGS and France are dancing a jig right now.

6/26/2012: Federal Republic Of Germany: EJR lowered AA- to A+ (Neg.) (S&P: AAA) (3413Z GR)
Synopsis: German chancellor Angela Merkel continues to create tension with EU member states by resisting calls for EU bonds (shared liabs.), money printing calls and for her pushing for fiscal controls and the seniority of bailout funding. Germay is likely to be outvoted by other ECB members and therefore will have greater prospective exposure. Watch for the EFSF and the ESM morphing into banks (thereby depressing eventual recoveries) and a rise in the number of euros. The fallout from a likely Greek exit needs to be monitored. We are cutting to " A+ "

Of my,not only a cut, but a slap-down on the Euro-bond issue as well! 

As for the Euro, the response was muted.