Friday, December 11, 2009


Over the last few months, Ireland, Spain, Greece & Dubai have been getting a lot of attention in the financial media.
Issues like unemployment, real estate meltdowns and debt concerns continue to haunt the ''green shoot recovery'' in Europe's weaker economies

Coming to Greece, Fitch Rating cut Greece's rating to BBB+, on lingering worries of an ever expanding deficit of 12.7% of output --- that's way over the EU limit.
Greek Swelling Deficit a Concern for Euro Area, Almunia Says ... / Brussels - Brussels to rebuke Greece over budget deficit

Concerns over Greece's $350Bn debt resulted in the Greek/German 10yr yield spread widening to over 200bps
Greek/German 10-yr yld spread widens above 200bps | Reuters

The equity markets in Greece have pulled back sharply as well.
Just goes to show you how quickly these fragile stock markets can give up recent gains!

Clearly, the the aftershocks of the 2008 meltdown and subsequent credit contraction and asset deflation, continues to spit in the face of Wall Street's 'green shoot recovery'.

No comments: