By Christopher Hessman
http://ProvenAutomatedBiz.com
It seems ratings agency Standard & Poor's has cut Greece's credit rating, saying that eurozone plans to restructure the country's debts would constitute a "selective default". Now this all means someone takes a hit and it would be private investors just as Obama did to the GM holders they also had gotten screwed as well. Now come to follow Moody's rating agency also downgraded Greece, while Fitch has indicated it may follow suit. Quote from S&P "We view the proposed restructuring as a 'distressed exchange' because, based on public statements by European policymakers, it is likely to result in losses for commercial creditors."
As I had written a last week it seems that tax payers will get some of this fall out or large gift to save Greece and European union. The aid package agreed last week by eurozone leaders included 109bn euros ($156bn-96bn) in new loans to Greece, various options to extend the country's repayment terms and reduce the amount it repays on existing loans, and voluntary private sector participation, so that banks share taxpayers' burden. One of the trade body representing global banks and other major lenders. This agency said the deal would cost private sector creditors about 20% of the value of the Greek debts they held. Of course these people up the food chain would say they didn't want to involve private sector we blam Germany, They had to go to private sector they were out of money.
Now I have this to add, if we had gotten behind on our loans for our bad financial practices would all these officials give us the same respect/deals that these nations are getting and allow us to restructure our loans? I say not!
We as people of the World need to pull back our nations spending and CUT CUT CUT!!
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