Wednesday, July 13, 2011

Irish Bonds cut to Junk

The EU collapse continues at an ever greater pace. The article that is the lead story in the Irish Times this morning is linked here. The following is a brief quote:

The resulting downgrade is expected to lead to a sell-off in Irish bonds when markets open today as many lenders will only hold bonds considered to be investment grade by privately owned rating agencies such as Moody’s.
A significant sell-off in Irish bonds will fuel the already growing anxiety that the debt crisis is spiralling out of control and spreading into major European economies.
Italian and Spanish borrowing costs hit their highest level for 14 years yesterday as euro zone leaders made plans for an emergency summit on Friday to resolve the ongoing Greek crisis, which is seen as the weakest link in the euro chain.

Further reading on Soros on the EU in the FT and the illusion of the EU dream is on Covering Delta, linked here.

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