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Tuesday, June 14, 2011

The Greek Tragedy - Another Day Another Downgrade

Another day dawns on the slow motion car crash of Greece's inevitable debt default and yet another downgrade has been made on Greece's debt (B to CCC), this time by Standard and Poor's.

S&P are of the view that Greece's credit outlook was "negative". Hardly surprising, if the ratings agencies keep downgrading the debt.

Do people pay these agencies for this?

Greece's sovereign debt is now the lowest rated in the world. This is what happens when politicians commit major fraud (on a national scale), in order to join the "exclusive" Euro club.

However, do not forget that some organisations and individuals make a very good living out of fluctuations in rates, yields, and prices etc. These fluctuations are driven by sentiment (fuelled by eg ratings) as much as hard "facts".

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