posted on Jul, 23 2012 @ 04:34 PM
After the markets in euroland had a battering today moodys gives the euro another
Moody's changes the outlook to negative on Germany, Netherlands, Luxembourg and affirms Finland's Aaa stable rating
London, 23 July 2012 -- Moody's Investors Service has today revised to negative from stable the outlooks on the Aaa sovereign ratings of Germany, the
Netherlands and Luxembourg. In addition, Moody's has also affirmed Finland's Aaa rating and stable outlook.
All four sovereigns are adversely affected by the following two euro-area-wide developments:
1.) The rising uncertainty regarding the outcome of the euro area debt crisis given the current policy framework,and the increased susceptibility to
event risk stemming from the increased likelihood of Greece's exit from the euro area, including the broader impact that such an event would have on
euro area members, particularly Spain and Italy.
2.) Even if such an event is avoided, there is an increasing likelihood that greater collective support for other euro area sovereigns, most notably
Spain and Italy, will be required. Given the greater ability to absorb the costs associated with this support, this burden will likely fall most
heavily on more highly rated member states if the euro area is to be preserved in its current form.
Spain 10y bonds are at 7.5% which usually means bailout time.at the moment the 100 billion euro's
spain got for the spanish banks look like it's no where near enough to cover the goverment debit and
that of the spanish regions also italy is not far behind with the same problems.
There is no way germany can cover both spain and italy with also the rumor that the
IMF is going to leave greece to it fate when it runs out of cash in september is this
at last begining of the end of the endless bailouts.
GLOBAL MARKETS-Stocks, euro slide, hit by Spain bailout
S&P 500 Poised for Biggest Decline in One
Month on Europe
edit on 23/7/2012 by skuly because: my rubbish spelling