More Euro-Sputtering
Pressure is mounting across the Pond
(Reuters) – The euro zone’s debt crisis intensified on the eve of a summit of the currency bloc when Moody’s downgraded Spain’s credit rating on Thursday and bond markets heaped pressure on Portugal to seek a bailout.
…Moody’s Investors Service cut Spain’s sovereign debt rating one notch to Aa2 and warned of further downgrades, estimating that restructuring savings banks will cost more than double the government’s 20-billion-euro forecast.
“(Moody’s) believes there is a meaningful risk that the eventual cost of the recapitalization effort could considerably exceed the government’s current projections,” the credit ratings agency said in statement.
This is big, shocking news. Moody’s thinks a government’s projections on how much something will cost might be considerably understated?
Really?
The ECB said on Thursday that debt-strained euro zone governments have yet to demonstrate convincingly the seriousness of their deficit-cutting efforts and may be weakening their commitments.
I wish those Eurocrats would get serious about the deficit like our Democratic Senators…hell, even most of the Republicans are jokes.
A $1.4 trillion deficit…so let’s be bold and cut $50 billion.
That’s one week of February’s deficit.
Biz, Nanny State, Politics | Mr. Bingley | 
March 10, 2011 8:14 am
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Thank you, Moody’s, for being about three years late with this little nugget. Italy, France, Portugal, Ireland and most of the former East Bloc are in as bad or worse shape. We’ll hear the crash loud and clear, then silence when the elites finally realize they have no clue. It’ll be act one of a brave new world.
I don’t think it’ll be a “brave” new world, Gary, but I’ll not argue about it. ‘cuz you’re spot on with the rest.
Yeah, Mr. B, the Senate wants to shut down the government* over a mere $50 billion. How pathetic that is.
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*: As much as I am a Federal employee, I can’t help but see that as a good thing.
50 billion is a rounding error compared to the 1.4 trillion dollar hole. Europe is going to crash hard and say goodbye to the Euro not that I ever thought it was a good idea.
I just found this. We’re now heading the list.
http://www.nationalreview.com/exchequer/261796/biggest-bond-fund-dumps-us-debt
I love how people are now suggesting that COUNTRIES look for a bailout. There’s NOBODY above countries, people. God doesn’t have an ATM and we’ve already made our deal with the Devil. Unless someone can draw on the Intergalactic Bank of Quatloos (member FDIC), it’s OVER. Y’all drank all the booze. It’s hangover time. There is precious little you can do about it now, except suffer – asking for a further handout is basically moving from liquor to antifreeze.
‘Fly, these characters are in denial, so OF COURSE someone will bail countries out.
It’s idiotic, but when a crisis hits, people tend to focus on what they think they can control.