Posted on 07/05/2011 2:22:15 PM PDT by markomalley
Moody's on Tuesday cut Portugal's credit standing to junk in the first such move by a ratings agency and warned the country may well need a second round of rescue funds before it can return to capital markets.
Moody's Investors Service slashed Portugal's credit rating by four levels to Ba2, making it follow Greece into junk territory below investment grade.
It cited heightened concerns that Portugal will not be able to fully achieve the deficit reduction and debt stabilization targets set out in its loan agreement with the European Union and International Monetary Fund.
There also is an increasing probability Portugal will not be able to borrow at sustainable rates in capital markets in the second half of 2013 and for some time thereafter, Moody's said.
Portugal is receiving funds from a three-year, 78-billion-euro ($112 billion) EU/IMF bailout program and does not need to issue long-term debt in the market until 2013.
Portugal faces formidable challenges in reducing spending, increasing tax compliance, achieving economic growth and supporting the banking system, the agency said.
(Excerpt) Read more at reuters.com ...
I’d be guessing weeks...not months. And the market will take a huge crash dive on that day (500 points down, my humble guess).
I wonder who’s next. Spain? Italy?
“There also is an increasing probability Portugal will not be able to borrow at sustainable rates”
I’m wondering how the hell anyone continuously borrows at a ‘sustainable rate’? WTF kind of nonsense is that?
One would think it already would have. It continues to puzzle me as to why it goes up. The economy is dead as a doornail.
Next up Illinois, then California
If Moody’s rates every entity as “junk” does Moody’s continue to exist?
Portugal is receiving funds from a three-year, 78-billion-euro ($112 billion) EU/IMF bailout program and does not need to issue long-term debt in the market until 2013.
Why, just this morning an article was posted, noting that 10 years after Portual had decriminalized drug use, there was no negative effect....
Anybody suppose there’s an undocumented reduction in motivation and productivity there?
Why, just this morning an article was posted, noting that 10 years after Portugal had decriminalized drug use, there was no negative effect....
Anybody suppose there’s an undocumented reduction in motivation and productivity there?
The PIIGS are all defaulting, but bond collapses and defaults are headed through the rest of Europe and this way, too.
If Spain or Italy follows, everything collapses. Each country has more than a trillion in government debt.
European implosion imminent.....followed by a global implosion.
Now, now....
The low-productivity, high-grift societies of the countries along the Med aren’t news, they’re hardly undocumented and they were well noted by the German, northern EU, French and UK Euro-skeptics - again, and again, and again.
Each time, they were called “racists” and so on.
For example: Greece has been in default, or something similar, on average about every two to three years for the 100 years prior to admission to the Euro. Italy has been an economic basket case on regular intervals since the fall of the Roman empire. Spain enjoyed a brief period of economic success whilst they were plundering and looting wealth from South America... right up until the point when the wrangled with those pasty, pale English.
Portugal: Their economic history of the last 100 years is so convoluted, so tortured, that I can only recommend that you go investigate it for yourself. In so doing, you’ll see that the issue of declining output, declining investment, etc is NOT a new development for them. You’ll see that private capital has been treated very shabbily in Portugal for decades. Go look up “the Carnation Revolution” WRT Portugal’s recent economic history. Look at their economic output and investment before and after this “Carnation Revolution.”
The brutal, unflinching truth of the matter is this:
The Euro can’t work with two completely different economic cultures within it.
You can’t have industrious, thrifty, productive northern Europe on the one side, and spendthrift, left-wing grifter governments and cultures on the other side of the compact. It ain’t gonna work. And no set of economic straightjacket conditions is ever going to turn a Greek, Italian, Spaniard, or Portagee Catholic into a thrifty northern European Protestant. Ain’t gonna happen. Not now, not 10 years from now, not ever.
You’re correct!
...I was trying to make a simple point on my lunch break...
and it was more of a response to an earlier post.
I honestly am looking forward to a total meltdown. And have prepared for it. Maybe then America will awaken. We need to get back to an economy based on a gold and silver standard and quit printing paper money that has no value.
there’s a correlation...also nations that legalize drugs have awful armies with gays serving openly
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