Wednesday, December 14, 2011

France To Be Downgraded

A week is a long time in politics.

Less than a week ago President Sarkozy of France was crowing over the EU's "historic" summit, that allegedly set in place systems and procedures that might one day resolve the Euro crisis.

The markets were less than impressed, and it is now expected that S&P will downgrade France's credit rating from Sarkozy's much prized AAA.

Why believe this rumour?

Well, Sarkozy seems to know that it is more than just a rumour because he is publicly stating that a downgrade doesn't matter!

BTW, a downgrade does matter, but don't spoil his day by telling him that!

As to the EU agreement fixing the Euro crisis, well it seems it hasn't.

The ECB's Klaas Knot has said that the Euro crisis will drag on for another two years, and that at least Euro 1 Trillion is needed to fix it.

Best not tell Sarkozy that either:)

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