Governments warned over debts

Globe and Mall ^ | 12/8/09 | Brian Milner

[FromLori]

Countries must get their fiscal houses in order or face credit downgrades, international ratings agencies say.

International ratings agencies are warning the United States and several European governments that they face credit downgrades if they don't soon come up with clear plans to get their deteriorating fiscal houses in order.

Moody's Investors Service said Tuesday the weakening public finances in the U.S. and Britain may “test the Aaa [triple-A] boundaries” for their ratings.

While analysts say there is no immediate risk of a cut in the ratings of major developed economies, the less stable fringe players are already feeling the heat.

In Europe, Ireland, Portugal and even France are under pressure to rein in rising budget deficits. And deeply troubled Greece has become the first euro-currency country to be whacked.

Athens' debt was downgraded a notch Tuesday to triple-B plus by Fitch Ratings. That's only three levels above junk status and means Greece will have to pay investors more to buy its bonds.

Another rating agency, Standard & Poor's, put the country on its watch list for a possible downgrade.

Spreads were already widening dramatically on Greek bonds as a result of a rapidly worsening fiscal crisis, its lack of credibility after steep revisions of economic performance and previous deficit projections, as well as growing fears over its unfunded social spending commitments.

The downgrade reflects Athens' announcement

[FromLori]

ping and related

http://www.zerohedge.com/article/daily-credit-summary-december-8-greeced-darkening

http://www.businessinsider.com/developed-nations-in-furious-race-to-blow-aaa-ratings-and-enter-debt-crisis-irreversibility-2009-12

http://www.marketwatch.com/story/miners-telecoms-weigh-on-europe-2009-12-08

and interesting

http://www.zerohedge.com/article/obama-meeting-top-bankers-monday-geithner-transition-works

[KoRn]

Those ratings agencies are a joke! They just issue press releases, making empty threats just so they appear to be doing their job.

There’s no way in hell our country, and many other obviously insolvent countries/entities should have a high rating on what they sell, yet they do. Look at how all of the garbage MBS were rated AAA.

[Loud Mime]

The American people voted for more debt, didn’t they?

[chris_bdba]

HMMM is this what will happen to healthcare? It will fall apart because of inabilty to pay but the republican’s will get the blame because they wouldn’t go along even though there are 60 democratic votes in the Senate?

[cranked]

See how the Lamestream media failed to cover this?