Saturday, 17 December 2011

More sombre reading

Spain and Italy were both told to brace for a debt downgrade after a leading rating agency concluded that a "comprehensive solution to the eurozone crisis is technically and politically beyond reach".

The above is from the article below.  Sombre reading.

http://www.telegraph.co.uk/finance/financialcrisis/8962488/Fitch-warns-Spain-and-Italy-of-downgrade-as-Moodys-cuts-Belgium-by-two-notches.html

In effect Fitch is stating that the decisions taken at the Brussels summit last week are irrelevant  (most commentators are of this opinion).    Outside of the politics of 'isolation', the '26' and the English/French spat, the real world of  sovereign debt, austerity, recession and rocky banks continues.  Expect turbulent financial markets in the next few days.


Update: 17.12.11

The following news will unsettle the markets!

http://www.telegraph.co.uk/finance/financialcrisis/8963541/Divisions-in-eurozone-over-ECB-bond-buying.html

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