Moody's Warns Of Sovereign Debt Crisis In 2010
Ratings agency Moody’s takes up the sovereign subject again on Tuesday, with its 2010 outlook on sovereign risk. And the mood, as the below chart should demonstrate, is rather miserable.
In fact, Moody’s has compiled a 1970s-style ‘Misery’ index. But instead of showing inflation and unemployment rates, it shows the fiscal deficit and the unemployment rate.
On that basis, Spain, followed by Latvia, Lithuania, Ireland, Greece and the UK are the gloomiest Moody’s-rated sovereigns in the world. The US is eighth — just after Iceland.
What’s more, Moody’s has come up with some rather ominous ‘themes’ for the 2010 New Year. Among them; the idea of an extremely painful debt overhang, potential social unrest and a significant amount of “exit risk” for governments trying to withdraw their unconventional economic and low interest rate policies.
Here are the themes, with selected excerpts and highlights:
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Dec 16, 2009 at 2:06 PM
Reader Comments (2)
Go fuck yourself Moodys. Twice.
Next time consult with Peter Schiff, Gerald Celente, Jim Rogers or Nassim Taleb (among a few select others) because ALL of the aforementioned had ALREADY PREDICTED THESE *EXACT* SAME SCENARIOS *YEARS* AGO. Thank GOD we have the internet nowadays and free access to knowledgeable, lucid & well-informed people like them. It frees us from having to accept the inane bullshit that the major newspapers & media try to pass off as "news".
And BTW since you Moody bastards are always lagging about 72 months BEHIND reality, consider the fact that the referenced economic thinkers have ALSO predicted that the USA is already officially up Shit Creek by now, that it's probably TOO LATE to really change course and that we've dug ourselves into the *Biggest Financial Hole Known To Mankind, Ever (*trademark pending)