Posted on 07/27/2011 6:19:04 PM PDT by markomalley
Standard and Poor's on Wednesday relegated Greek government bonds to the deeper end of junk status, cutting the debt-crippled country's credit rating by two notches to CC and saying a new downgrade is likely.
The international ratings agency said a proposed restructuring of Greece's debt load under a second international bailout deal worth Û109 billion ($157 billion) would amount to a selective default -- a rating that, while humiliating, is expected to have limited practical consequences. Both of the other major ratings agencies have said much the same.
A Standard and Poor's statement also said the possibility of a future Greek default is likely to remain high.
Under the debt relief deal struck in Brussels last week, banks and other private investors will contribute some Û50 billion ($72 billion) to the rescue package until 2014 by voluntarily swapping Greek bonds that they hold for new ones with lower interest rates or slightly lower face value
Oh my. A downgrade in the US is coming, as well.
The Greece “bailouts” are a sham. The Eurozone is protecting Euro banks and bond holders just like TARP protected Wall Street and banks worldwide. The Euro bailouts only hurt the common man, same as TARP hurt the common man.
this is a fight between the reserve status of the dollar and the wanabe reserve status of the euro.
for the euro to have a reserve status they have to rescue Greece.
This is a currency war.
These out of control big government Commies need the bracing comeuppance of a “wait ‘til your father gets home” in the worst way.
AKA the disciplining rigor of the marketplace.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.