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Forget Rush and his boorish ways. Forget the birth control demands.

 

Here's something you can really worry about, not kerfluffles.

 

Fitch just downgraded Greece from "C" to "restricted default."

This designation hardly comes as a surprise, since the ratings agency had previously said that the country's planned debt restructuring would afford it this rating.”

 

This is one grade above insolvent.

Read more: http://www.businessinsider.com...2012-3#ixzz1odQ3DuXx

 

“Greece in last ditch scramble to avoid default

 

Greece is on the verge of completing the largest sovereign debt restructuring in history, but doubts remain over whether the stricken country can avoid a default. “

 

Athens officials last night estimated more than 85pc of private creditors had accepted the €206bn (£173bn) bond swap shortly after a deadline expired yesterday evening. That is enough for the deal to go through, but leaves the possibility the government might have to use its controversial Collective Action Clauses (CACs).

 

Ratings agencies have warned they will declare a default if Greece activates the CACs, which allow the government to impose the deal on the remaining bondholders. The CACs will be used if the take-up falls below the desired 95pc but above the required 66pc.

 

http://www.telegraph.co.uk/fin...o-avoid-default.html

 

The swap involves swapping the present bond issue for bonds worth 53.5 percent less.  Some investors, such as national banks may lose up to 75 percent.  Bond investors include national banks, private investors and pension funds.

 

If any investors refuse the bond swap, they will be forced to under the retroactive CACs.  This will trigger credit default swap insurance in the billions.  CDS held by national banks, private investors and pension funds.

 

“Alarm sounds over Spain’s rising public debt


The latest statistics from September 2011 show total Spanish public sector debt standing at €706bn, as measured by the EU’s deficit-control rules – a manageable 66 per cent of the country’s €1.07trn gross domestic product.

 

But, the total debt is already much higher than the number calculated according to the EU’s definitions. Moreover, it is growing quickly with each successive annual deficit. This year will see a further €60bn added to the total, or 6 per cent of GDP, and it could be greatly swollen in future by contingent liabilities for everything from bank bailouts to guarantees for loss making toll road contracts managed by the private sector.

 

Edward Hugh, a Barcelona-based economist who has studied the composition of Spanish public debt, concludes that by EU measures it has already reached about 70 per cent of GDP, to which must be added 7 percentage points for the unpaid bills of central, regional and municipal governments, 5 percentage points for the debts of public enterprises and a further 5 percentage points for public debt held by the state pension fund.”

 

http://www.ft.com/cms/s/0/2c02...0.html#axzz1odTWPtEq

 

“Legal skullduggery in Greece may doom Portugal

 

Europe has ring-fenced Greece's debt crisis for now but its escalating recourse to legal legerdemain has shattered the trust of global bond markets and may ultimately expose Portugal, Spain, and Italy to greater danger. “

 

http://www.telegraph.co.uk/fin...y-doom-Portugal.html

 

If Greece gets debt relief in by swapping present value bonds for bonds of greatly less value; what’s to stop the other nations from demanding the same. 

 

With this atmosphere, who is going to loan these nations anymore money? 

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Most of Europe is in worse financial shape than America, although the POTUS is working overtime it would seem to catch up. 

Best,  since all the European Countries are some what connected at least to some degree financially if one fails it will bring on negative repercussions to all, and sooner than later the waves caused by the stone thrown in the center of the pond will reach our s****s. Question is will it be a ripple or a Tsunami ? 

Greece is a perfect example of a country where the balance of those who give to the system has been outnumbered by those who take from the system.  The costly retirement plans and month long vacations (holiday) has finally caught up with them and now the bills are coming due.  This nation is not far behind and as we are led down the path to slaughter by the Unions and the LIberals we only have to look at Greece and see our future.

Originally Posted by teyates:

Greece is a perfect example of a country where the balance of those who give to the system has been outnumbered by those who take from the system.  The costly retirement plans and month long vacations (holiday) has finally caught up with them and now the bills are coming due.  This nation is not far behind and as we are led down the path to slaughter by the Unions and the LIberals we only have to look at Greece and see our future.

 

Anything can be overdone, even generosity. If Greece has been generous to its working class, the United States has been considerably less so. And getting worse. 

Portugal, Spain and Italy may soon be in the same leaky boat.  You can't loot the public treasury forever.  As food stamps, earned income tax credits, unemployment insurance payments and welfare , in general, are up, with eligibility requirements down, that is not the case.  Despite the Proper Propagandist. Remember, its just propaganda. 

Ditzy conveniently forgets the decade of the 1980s and Japan Inc, when it was predicted Japan would surpass the US.  Either, Ditzy isn't familiar with the world of business, or is being disingenuous. Obviously, the top corporations as rated by Forbes and Fortune.  

 

But, Japan decided to emulate the western Keynesian model -- big mistake.  

I must amend my original statement that Japan was home to the top 8 companies in the world. I should have stated 8 of the top companies.   Otherwise, stands.  And, Japan is a shadow of its former economic self. They allowed a property bubble to fester for over a decade. Then, adopted the Keynesian model to rescue themselves. Rusults predictable and sad. 

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