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Greek Debt Downgraded To Junk Status

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http://www.bloomberg.com/apps/news?pid=20601010&sid=apN6HFWl_53w

Greece Cut to Junk by Moody’s on ‘Substantial’ Economic Risks
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By Ben Martin and Maria Petrakis
June 15 (Bloomberg) -- Greece’s credit rating was cut to non-investment grade, or junk, by Moody’s Investors Service, threatening to further undermine demand for the debt-strapped nation’s assets as it struggles to rein in its budget deficit.

If Spain is further downgraded the Merkel bailout may be regarded as ineffectual in restoring confidence. The troubles are far from over and it seems likely that the recent stock market euphoria was misconceived.

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And here is the Daily Mail take on it:

http://www.dailymail.co.uk/news/worldnews/article-1286480/EU-chief-warns-democracy-disappear-Greece-Spain-Portugal.html

Nightmare Vision for Europe as EU Chief ‘warns democracy could disappear’ in Greece, Spain and Portugal

EU Chief must have been wearing a tin hat as he said this - at least metaphorically.

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how much are these guys paid?

the borrower couldnt pay up, got a cheap loan and NOW its downgraded?

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do you think they would time a downgrade just prior to default so at least they can say it wasnt unexpected?

No but rotate the question 180 degrees. If there was any chance of default after so much publicity, why would you leave the rating at anything above Junk. How awkward would it be if you said the government was still a safe bet after the default happened?

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I am hopeful that when all is said and done the result of this will be the destruction of any long term hopes of a fedralist future for europe ( complete with its cast of unelected officials) and what I would see as a move forward into a common trading block............ while I can see some sens in the idea of the euro the reallity has been an ummitigated disaster and I wouldn't have any confidence in europe doing any of the following:

Having an effective foreign policy

Having an effective diplomatic service

Having an effective tax regime

Having an effective legislature

Having in fact anything of much use to anyone..... and looking at the make up of governments in europe any regime would be much much left of where we are now.

If eruope did ever federalise ( as a solution to the euro issues for instance) then I'd instantly favour us becoming the largest offshore tax haven in the world and regain our full independence.

My dream though is for europe to get back to a wider form of common market with good communication links and co-operation for mutual interest.... if we had that now pretty much every state would be in a better position ( europe has given Billions effectively to the med states and the small states, but they have spanked the assistance up the wall and now I suspect wish they'd never had it in the first place... greece wouldn't be as big a bust as it is if it hadn't joined the euro)

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June 15 (Bloomberg) -- Greece’s credit rating was cut to non-investment grade, or junk, by Moody’s Investors Service, threatening to further undermine demand for the debt-strapped nation’s assets as it struggles to rein in its budget deficit.

I think this is essentially the end for Greece. The second junk rating forces all pensions funds etc to dump Greek bonds completely.

:ph34r:

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My dream though is for europe to get back to a wider form of common market with good communication links and co-operation for mutual interest.... if we had that now pretty much every state would be in a better position ( europe has given Billions effectively to the med states and the small states, but they have spanked the assistance up the wall and now I suspect wish they'd never had it in the first place... greece wouldn't be as big a bust as it is if it hadn't joined the euro)

That's your opinion. Personally, I think the economic advantages of the European single market and, to a lesser extent, the euro have helped the countries of the EU to maintain their economic strength in the face of strong competition from other countries with large internal markets, such as China and the US. Dissolving the European single market would cripple trade between European companies (due to the lack of common standards and laws) and would ultimately be economic suicide.

The fact that certain countries pigged out on the cheap credit available as a result of membership of the euro is a reflection of the bad governance of those countries rather than any inadequacy of the euro.

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  • 145 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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