Moody's downgrades Italy: analyst reaction - Italy’s credit rating was cut by Moody’s for the first time in almost two decades on concern the government will struggle to reduce the region’s second-largest debt amid chronically weak growth. I suspect money is secretly being printed and moved around to prop up Greek banks and maybe other European banks too. The Fed's enforced audit published recently shows they already disbursed at least $16 trillion (some reports claim as much as $23 trillion) to various establishments around the globe. Merkel, Sarkozy et all look much too smug to me and they know public anger is growing, particularly in America is growing by the hour.
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European countries with debt ratings below the top Aaa level may see reductions in their rankings, Moody’s Investors Service said.
“All but the strongest euro-area sovereigns are likely to face sustained negative pressure on their ratings,” Moody’s said in a statement. “Consequently, Moody’s expects fewer countries below Aaa to retain high ratings.” It added that “there are no immediate pressures that could cause downgrades for Aaa-rated countries.”
The statement came after the company yesterday cut Italy’s rating for the first time since 1993 on concern the government will struggle to reduce the region’s second-largest debt amid chronically weak growth. Italy was cut three levels to A2 from Aa2. Standard & Poor’s downgraded Italy on Sept. 20 for the first time in five years.
European stocks dropped for a third day, the longest losing streak in four weeks, as policy makers signaled they may renegotiate terms of Greece’s bailout, deepening concern about the impact of the debt crisis. The benchmark Stoxx Europe 600 Index fell 2.8 percent to 217.46 at the 4:30 p.m. close in London, the lowest level in a week.
European finance chiefs meeting this week considered “technical revisions” to the second Greek bailout, Luxembourg Prime Minister Jean-Claude Juncker said yesterday, fueling concern bondholders may have to take bigger losses on the nation’s debt.
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