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Thursday, June 02, 2011

The Greek Tragedy - Moody's Downgrade Debt

Greece continues to endure further public humiliation as Moody's downgraded Greece's debt, by three notches to Caa1, placing it at the very bottom of its European league table.

The Telegraph reports that the downgrade happened, as if by magic, whilst German ministers were trying to reassure markets that the EU and IMF are both committed to another bailout.

Martin Kotthaus, German finance minister, said:

"It was designed jointly. It will be evaluated jointly, and I also assume that it can only be continued jointly, including when it comes to the question of payouts of future tranches."

Neither the markets, nor Moody's, believe this; as there are reports that the IMF (sans DSK) will not sanction the next tranche in the bailout.

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