...you'd have to be a idiot to believe that. That'll never happen. No major economy could end up at junk credit status.
So I've been told again and again, less confidently recently, but still despite the fact that it's been completely inevitable for years, and only becoming more inevitable over time, people continue to believe that the sky isn't falling in.
S&P downgrades Spain's credit rating
Rating agency Standard & Poor's has downgraded Spain's credit rating by two notches, warning that the deepening economic recession is limiting the government's options
S&P warned that rising unemployment and harsh austerity measures are likely to intensify social unrest and cause further friction between Spain's central and regional governments.
"The downgrade reflects our view of mounting risks to Spain's public finances, due to rising economic and political pressures," said the rating agency in a statement.
"In our view, the capacity of Spain's political institutions (both domestic and multilateral) to deal with the severe challenges posed by the current economic and financial crisis is declining, and therefore, in accordance with our rating methodology (see "Sovereign Government Rating Methodology And Assumptions," published June 30, 2011), we have lowered the rating by two notches."
The downgrade to BBB- from BBB+ late on Wednesday leaves Spain one notch above "junk" status. S&P also attached a "negative outlook", which warns of a possible downgrade in the medium term.
Full article is here:
www.telegraph.co.uk/finance/financialcri...s-credit-rating.html
When you see the 5th largest economy in Europe go under, we'll really start to see some action because it will become impossible for all the short-term economic fixes of creating more debt to have an effect.
www.bbc.co.uk/news/business-19905747
The country's borrowing costs have remained high for months, leading many analysts to argue it is only a matter of time before Madrid is forced to ask its eurozone partners for financial assistance.
However, last week, Spanish Economy Minister Luis de Guindos denied his country would be asking for help.
"Spain does not need a bailout at all," he said.
Actually, they're in no worse shape than any number of other countries including Italy, Britain, France, Portugal and Greece. The banksters are just focusing their attention on Spain for the time being.
