Oh wait...that's Latveria, my bad.
Posted on 02/24/2009 4:33:31 PM PST by mojito
Latvia's sovereign debt has been cut to junk status as its economy struggles with the financial crisis.
The credit ratings agency Standard & Poor's has reduced its rating to BB+/B, which is below investment grade.
S&P predicted that Latvia's economy would contract by 12% this year, following its 4.8% decline in 2008.
The Baltic nation was once the fastest growing economy in the European Union, but in the last three months of 2008 it was the worst-performing.
(Excerpt) Read more at news.bbc.co.uk ...
Hell sign me up. It’ll be worth more than our bonds soon.
A strategically positioned domino. A litmus test of sorts. See what happens, what works, what fails at this stage.
All you need to know is that the domestic money supply in practically every eastern European country grew at 25-30% rates throughout the boom years. There is no way all of that was going to remain as real growth.
But we all know what happens next - the IMF recycles their debts to provide investment grade stuff to western creditors, and takes the dodgier local government stuff onto its own books.
I can tell you today while the market was rally Moody was busy downgrading across the board. Slick.
shhhhh I know but as long as people forget the facts they make stupid decisions and the rest of us make money.
If BB+/B is below junk, what rating is BBC?
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