“Securities pricing is, in every sense a psychological phenomenon that arises from the interaction of human beings with fear. Why not Greed and Fear as the equation is usually stated? Because Greed is simply Fear of not having enough”. — John Bollinger

1. Moody Downgraded 6 European Countries — Spain gets the worst of fresh Moody’s cuts. Triple-A France, Britain, Austria outlooks cut to negative. Moody’s also cut debt ratings on Italy and Portugal by one notch, along with Slovakia, Slovenia and Malta.
2. Euro Zone Economy Shrinks — The euro zone economy shrank at the end of 2011 and will flirt with a mild recession under the weight of the sovereign debt crisis, but strength in France and resilience in Germany may keep it above water. Economic output in the 17-nation currency area fell 0.3 percent in the fourth quarter from the third.
3. Greece battles to salvage bailout package — Greece’s leaders battled to salvage a new 130-billion-euro ($170 billion) EU/IMF bailout. But with mistrust of Athens high, several EU sources told Reuters that finance officials in the 17-state currency union were studying whether it was possible to delay part or all of the rescue deal while still avoiding a disorderly default.
4. Moody’s Warns Downgrade on Major Banks — Moody’s warned it may cut the credit ratings of 17 global and 114 European financial institutions in another sign the impact of the euro zone government debt crisis is spreading throughout the global financial system.
5. Foreclosure Filings Fall 19% In January — Mortgage default notices rose by over 20% on year in several states in January, including Connecticut, Massachusetts and Florida, indicating that the 2011 freeze in repossessions – which was due to the robo-signings scandal – is beginning to thaw.
6. Swiss police seize $6 trillion in fake U.S. bonds — Swiss authorities, at the request of Italian prosecutors, seized $6 trillion in fake U.S. bonds from three safety deposit boxes in Zurich, the BBC reported. The BBC noted that the seized bonds amounted to almost half the U.S. debt.

The week ahead — Economic data from Econoday.com: