Moody’s Downgrades EU Creditors: It’s the beginning of the End

HJ: The painfully slow disintegration of the EU and the collapse of the global economy lurches on.  I don’t know about you, but I just want to be done with this chapter of history already.  I am totally ready, willing, and able to move onto something better already.  – Truth

By John Ward (The Slog)

The Slog

Slog’s Bankfurt Maulwurf claims victory and vindication

Germany, the Netherlands and Luxembourg had the outlooks for their Aaa credit ratings lowered to negative by Moody’s Investors Service this morning, citing “rising uncertainty” about Europe’s debt crisis, the risk of Greece leaving the eurozone, and the growing likelihood of massive bailout bills in Spain and Italy. On the whole, they seem like pretty sound reasons to me.

The IMF has, as I predicted, written off Greece. The Greek elite is, in turn, not even trying to hide how little effort they’re exerting to put their own public sector feathered-nest in order.  The managements of Greek state-run enterprises seem to be so forgetful, they forgot to implement government decisions concerning wages cuts for thousands of employees at state-run enterprises (DEKO) and other state bodies and organizations. And the Coalition itself omitted to pass the legislation forcing them to do it.

The Troika arrives in Athens today, and will be vociferous in pointing out the non-compliance. (I doubt if they’ll bother to mention that all the  forgotten public sector cuts have been dumped onto the already flatlining private sector). It is just possible that the Troikanauts will say “That’s it, no more money”, but unlikely: with Spain and Italy in bond-yield intensive care, this would be bad timing.

Read the rest of the article here: The Slog

1 comment on this postSubmit yours
  1. Sorry HJ, but it’s going to take some years.
    Check out the work of economist (cycle theorist Martin Armstrong). His Economic Confidence Model (not his subjective opinion) indicates that 2015.75 through 2020 is going to be the most volatile years. We got the rest of this decade to go.
    ECM is a computer generated model based on pi and hundreds of years of thorough economic data.
    Armstrong has been unbelievably accurate in the past. He’s had a devout following among traders for decades and is becoming known among the lay public now. His essays are phenomenal. It’s far Kondratieff – Kondratieff never had the benefit of super computers.
    Most popular essay (written while imprisoned – contempt of court for 7 years NY)

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