Spain will probably lose its Aaa credit rating after the country was put under review for possible downgrade in June, and the US needs a clear plan to tackle its deficit, Moodys Investors Service said.
Moody's says Spain’s sovereign debt likely will be downgraded at the end of a three-month study. Spain's credit (Spain)fundamentals "continue to be very strong," Moody's says, but its economy is lagging behind other nations with a similar AAA rating and may need years to recover from its real estate bubble. Also, unemployment rises to a 13-year high: 20.09%. Post your comment!
Every time there is a little blip by China in its purchasing or holding of US treasuries, hyperinflationists come out of the woodwork ranting about the "Nuclear Option" of China dumping treasuries en masse.
Such fears are extremely overblown for several reasons.
1. China's purchasing of US assets is primarily a balance of trade issue. If the US runs a trade deficit, some other countries ruin a trade surplus and thus accumulate dollars. This is purely a mathematical function as I have pointed out many times.
2. If China dumps treasuries for Euro-based assets, oil-based assets, yen-based assets or for that matter anything other than dollar based assets, the problem merely shifts elsewhere and those buyers would have to do something with the dollars.....
Eurozone mortgage borrowing grew last month at the fastest pace in almost two years in a sign that bank lending across the 16-country region may be flickering back to life. Lending for house purchases rose at an annual rate of 3.4 per cent in June – the fastest since September 2008, according to European Central Bank data published on Tuesday. The acceleration pointed to a revival in consumer confidence and an increased willingness by banks to fuel the economic recovery with loans to the private sector.
So is this really the good news it seems to be? Well the answer is (as usual) yes and no. The problem is that behind the positive aggregate data lie the individual national details (you know, the place where the devil is usually to be found), and when.....
Moody’s and S&P have had a habit of downgrading sovereign paper in nations such as Greece, Spain, and Portugal long after it was clear to the capital markets that their prospects to pay their obligations were distressed. That does not mean that the EU sovereign debt crisis is over. The countries with the most severe [...]
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"Eurozone mortgage borrowing grew last month at the fastest pace in almost two years in a sign that bank lending across the 16-country region may be flickering back to life. Lending for house purchases rose at an annual rate of 3.4 per cent in June – the fastest since September 2008, according to European Central Bank data published on Tuesday. The acceleration pointed to a revival in consumer confidence and an increased willingness by banks to fuel the economic recovery with loans to the private sector."
So is this really the good news it seems to be? Well the answer is (as usual) yes and no. The problem is that behind the positive aggregate data lie the individual national details (you know, the place where.....
BARCELONA, Spain, July 29, 2010 /PRNewswire/ --
- The On-line Fashion Market in Brazil is Expected to Undergo a
Sustained Annual Increase of 32.5% Between 2008 and 2012, According to
Forrester
- Privalia Predicts That Sales for 2010 will be 8 Times Greater
Than Those R
The majority of European banks passed a round of “stress tests” aimed to measure their financial system’s durability against economic disasters. But some wonder whether the results would ease the minds of EuropeETF investors who are worried about the stability of the whole euro system.
Saudi Arabia: Saudi Aramco has signed contracts with international firms to build a multi-billion dollar refinery at Yanbu on Saudi Arabia's Red Sea coast, Reuters has reported. South Korean firms Daelim and SK Engineering and Construction Co won deals to build three of the main processing units at the 400,000 barrels per day (bpd) refinery. Other winners included Spain's Tecnicas Reunidas , Dayim Punj Lloyd (Saudi Arabia), a unit of Punj Lloyd, and Egypt's Engineering for the Petroleum and Process Industries (ENPPI), the company said in a statement. The complex refinery is slated to process heavy crude from Saudi Arabia's project to pump 900,000 barrels per day from the Moneefa oilfield. [AMEInfo.com]
MADRID and OTTAWA, Ontario, July 28 /PRNewswire/ -- Spain's Panda Security and Canada's Defence Intelligence provided key information to the FBI and international authorities that led to catching 23 year-old, "Iserdo," the confirmed author of the Butterfly botnet kit. With their partners in the Mari
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