Euro Debt Contagion
S&P Downgrades Spain
Excerpt:
Just one day after roiling global markets with downgrades for both Greece and Portugal, Standard & Poor's Corp. on Wednesday downgraded Spain's longterm credit-rating to double-A with a negative outlook.
"We now believe that the Spanish economy's shift away from credit-fuelled economic growth is likely to result in a more protracted period of sluggish activity than we previously assumed," Standard & Poor's credit analyst Marko Mrsnik said.
Comment: Imagine when governments cannot pay their own debt! How long until the US experiences this?
Merkel: "the stability of the euro zone was at stake"
ReplyDeleteObama concerned about Greek debt
White House spokesman: "This is something that is of great concern to the president"
Comment: I wish Obama would be worried about our debt!
I remember wondering what was going on back when the Euro was being considered--that the Germans would EVER let the Italians near their currency boggled my mind.
ReplyDeleteCome to think of it, it still does. If you've got to have fiat currency, it sure helps to have someone at the central bank who remembers what the Weimar hyperinflation did--and that from personal experience.