S&P is just being generous with AA+, as they were with the USA. They're basically saying that, all right, listen, we understand that you own a magic printing press in your central bank that makes specie-less currency, but we also recognize that fact as well as the fact that you are printing hundreds of trillions of Euros to bail out the Eurozone. As though no one knew that bailouts based on credit, were, by definition, incurring the risk of the insolvent countries?
I'm sorry, but this is not a matter of "alphabet soup," the ratings are being artificially inflated, everyone knows that the governments are insolvent and will be forever incapable of paying back their debts to bond holders and foreign creditors. The debt to GDP ratios are too high, and taxation is too politically unpopular in too many parts of the world. There is a constricted revenue stream and spending sprees are rampant. The problem will get worse and then crater.
@All
No nation deserves a AAA+ rating at this point. If any of us had this kind of debt to income we wouldn't get a loan to save our asses....fact
6765BMC 2 months ago
I'M GOING TO CUT YOU SHORT TO SIMPLY LET YOU KNOW THAT THE EURO HIT A 17 MONTH LOW, LAST FRIDAY.
yourtreat2 2 months ago
well while I like sarkozy I still have a hard time swallowing the reason why selma hayek got the French Legion of Honor for PUS N BOOTS LOL.
Bander1 2 months ago
Excuse me, I meant to say "hundreds of billions of Euros."
Redfingers 2 months ago
S&P is just being generous with AA+, as they were with the USA. They're basically saying that, all right, listen, we understand that you own a magic printing press in your central bank that makes specie-less currency, but we also recognize that fact as well as the fact that you are printing hundreds of trillions of Euros to bail out the Eurozone. As though no one knew that bailouts based on credit, were, by definition, incurring the risk of the insolvent countries?
Redfingers 2 months ago
I'm sorry, but this is not a matter of "alphabet soup," the ratings are being artificially inflated, everyone knows that the governments are insolvent and will be forever incapable of paying back their debts to bond holders and foreign creditors. The debt to GDP ratios are too high, and taxation is too politically unpopular in too many parts of the world. There is a constricted revenue stream and spending sprees are rampant. The problem will get worse and then crater.
Redfingers 2 months ago
France should not have retained the triple A rating
imdaark 2 months ago