Saturday, June 18, 2011

Moody's warn Italy and French Banks on credit review! Spanish debt.

The most concise review of the news of Moody's warning on Italy, that broke last evening as North American markets were closing is linked here, and comes from CBC in Canada. A quote:

Moody's cited challenges which hindered the country's recovery from recession including low productivity, inflexible labour agreements and domestic markets, and the prospects of an eventual rise in interest rates.
"Italy has so far only recovered a fraction of the nearly seven percentage points in GDP that it lost during the global crisis, despite low interest rates, which are likely to rise in the medium term," it said in a release.
It also raised the possibilities that there may not be the popular will to support government attempts to cut its debt load and that foreign lenders may increase borrowing rates if the European debt crisis escalates.

Meantime in Spain, bad loans rose to a 16 year high the central bank is preparing to buy up €7billion of bad debts from the Cajas as the housing market worsens! WSJ link.

At whose door will that seven billion worth of more waste eventually be laid one must wonder.

Slowly but surely the evidence arrives of the fact that the EU is bust, making the obscene speech delivered by Viviene Reding which I linked, with a quote in a post yesterday,  (now again here) even more historic for its utter ignorance and entire insensitivity.

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