Greece warned about credit rating risk

A

ASusilovic

Greece’s financial difficulties escalated on Monday after it was warned of a possible credit rating downgrade and Jean-Claude Trichet, European Central Bank president, said Athens would have to act “courageously” to bring its budget under control.

Interest rates on Greek bonds surged back close to their highest levels for seven months after Standard & Poor’s put Greece’s A minus credit rating on “negative watch”, which usually leads to a downgrade within a month.

Separately, Mr Trichet hinted that action taken by the new Greek government was not yet enough to bring the crisis under control. Calling Greece’s situation “very difficult”, he told the European parliament “we all know the very important and courageous decisions that will have to be taken”.

http://www.ft.com/cms/s/0/f9b2c120-e36c-11de-8d36-00144feab49a.html

What about a currency devaluation ? Oopss, my error. Greece is EU. Ay, ay, ay...
 
Quote from Martinghoul:

To be fair to Greece, it wasn't just them yesterday. Portugal was also put on negative watch.
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Got a picture for you :

23616.jpg
 
Moody’s Investors Service said its top debt ratings on the U.S. and the U.K. may “test the Aaa boundaries” because their public finances are worsening in the wake of the global financial crisis.

The U.S. and U.K. have “resilient” Aaa ratings, as opposed to the “resistant” top ratings of Canada, Germany and France, analysts led by Pierre Cailleteau said today in a report. None of the top-rated countries is “vulnerable,” or have public finances that are “stretched beyond the point of ‘no return’ to the Aaa category,” New York-based Moody’s said.


http://www.bloomberg.com/apps/news?pid=20601087&sid=ah7iujnjVo8o&pos=2
 
I don't need to see pictures... I am staring at 5Y Greece cheapening arnd 50bps to Germany today. I have to say this is where I get tempted, against my better judgement...
 
Quote from Martinghoul:

I don't need to see pictures... I am staring at 5Y Greece cheapening arnd 50bps to Germany today. I have to say this is where I get tempted, against my better judgement...
More...

Hehe... :p Temptation where ever you look around..so many "opportunities"...
 
Quote from ASusilovic:

Hehe... :p Temptation where ever you look around..so many "opportunities"...
More...
Opportunities to lose one's fingers! Every one of these is a falling knife...
 
What would happen should Greece default?

To the Euro?

To other Euro zone countries in bad shape?

Will Germany step in?

The IMF?
 
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