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7/6/11

US Rating Agencies Are the Least of Europe’s Problems - by Ivory Johnson

One might argue that Greece technically defaulted when it could no longer borrow money from the capital markets to meet its obligations. Much like optimistic children who faithfully believe new sneakers make them run faster, the European Central Bank has engaged in fiscal gimmicks to delay the inevitable.

It would appear that the rating agencies have reached a similar conclusion, threatening to assign a default status to Greek debt if the ECB embraces a plan to roll over maturing bonds.
France built the Maginot Line during World War II, an impenetrable wall supported by heavy artillery and 15 percent of the French army. Despite their efforts, Adolf Hitler went around the wall and conquered Paris without much opposition.

Note EU-Digest: Europe should not care about US rating agencies and shut them out of the EMU completely. If Europe would return to each having their own currencies, only the financial industry would benefit. The US rating agencies would do much better concentrating on their own home market, which is completely living in "La-La-Land".

For more: Europe: Rating Agencies Are the Least of Europe’s Problems - CNBC

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