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It will be interesting to see what happens when California defaults and the US taxpayer is asked to pick up the tab.
1 posted on 06/26/2012 2:36:03 PM PDT by Oldeconomybuyer
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To: Oldeconomybuyer

This will piss off the Germans. The Germans are pretty fastidious about paying their debts and now their credit is getting downgraded thanks to the PIIGS. They traded in their DMs for the on life support Euro now they might be forced to trade in their AAA credit for Club Med junk status.


2 posted on 06/26/2012 2:38:21 PM PDT by C19fan
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To: Oldeconomybuyer

This makes holding Euros as bad as derivatives gone wild!

Although, it is more like Germany unwittingly hiring all the retired Greek civil servants to lounge around the pool.


3 posted on 06/26/2012 2:48:47 PM PDT by DrDavid (George Orwell was an optimist.)
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To: Oldeconomybuyer
At this rate, Germany's debt will soon be rated equally with Botswana's. :-)

(This is an inside joke meant for people who were watching the "raters" at Moody's way back when they dropped Japan's sovereign credit rating down to that of Botswana's, infuriating the Japanese government. It also proved to be a singularly silly move on Moody's part; Japan of course will never default on bonds issued in yen — Japan, like any country with its own currency, can issue as much money as they need to pay interest. Indeed, lack of the same flexibility for the members of the EMU is what is causing so many problems in euro-land, including these well-deserved credit rating losses, unlike the Japanese situation.)

5 posted on 06/26/2012 6:14:07 PM PDT by snowsislander (Please, America, no more dog-eating Kenyan cokeheads in the Oval Office.)
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