Standard & Poor, one of the largest rating agencies just officially downgraded Greek sovereign debt to “BB+ with a negative outlook” which has passed the threshold for “junk bond” status. Greek debt is practically worthless as an investment. S&P has also just downgraded Portugal’s debt. The PIGS countries (Portugal, Italy, Greece, & Spain), countries with unsound financial practices (massive government expenditures & borrowing far exceeding tax revenues) are falling like flies, and provide a lesson for us here in the U.S.
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Safnerism
Free Markets. Emergent Orders. Common Sense.
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The Global Economy Is Getting WORSE, Not Better
Last week I commented very briefly on the Currency Crisis that is frothing out of the Greek Debt Crisis. Today it came to an even greater head, with a substantial impact on global markets, so I want to analyze the devastation in Greece and its implications in much more depth.
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