by Les Dunaway
A Special Breaking News Edition
World markets took a hit today with Moody’s downgrade of Spain’s credit rating. This cut followed similar cuts of Greece (on Monday “to B1 from Ba1 with a negative outlook”) and Turkey(last May). The “negative outlook” comment means “we think it will go down more”.
The usual comments came from came from the people responsible for the problems in Greece, and elsewhere. Greek Finance Minister George Papaconstantinou said the country’s recent downgrade by Moody’s Investors Service was “inexcusable”… “The last few days highlight once again how important a more and better regulated environment for ratings are,” Economic and Monetary Affairs Commissioner Olli Rehn and Internal Market Commissioner Michel Barnier said in a joint statement.
Do those blatherings sound like anything we’ve heard out of Washington?
These problems hurt us directly, take a look at today’s market and they show us our future unless spending is cut. Here’s a sentence from MarketWatch‘s analysis “The yield on Greek 10-year government bonds rose to 12.12% Friday, moving back above the 12% level for the first time since January, Jenkins noted, while the two-year spread had hit 15.22%.” Can you IMAGINE that the bonds of a nation can be headed toward 15% rates? Can you imagine what America will look like when our’s do?
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Spain hit by Moody’s debt downgrade – Mar 10, 2011
Spain Downgraded by Moody’s: Analysts React – Mar 10, 2011 <<<<<< GOOD, INFORMED comments