Moody's, one of the world's preeminent ratings agencies is preparing to sharply cut the debt ratings on 114 financial institutions in 16 European nations. Those downgrades will make it very difficult for those banks to borrow money other than at far higher rates. What does this mean to you?
It means a vital source for European credit will become much more costly for nations already deeply struggling, such as Portugal, Ireland, Italy, Spain and Greece, as the noose around their economies grows tighter, as much of Europe slowly moves to economic collapse. That collapse will take the U.S., Asian and other economies with it.
What we have is a slow motion train wreck, as the European Central Bank, the International Monetary Fund and the Euro nations pretend this isn't happening, in an attempt to restore fiscal confidence, while the 114 financial institutions pressure Moody's and other major rating agencies not to downgrade their credit.
I share this with you dear reader with sadness in my heart. For such a financial collapse will bring hardship to vast numbers of people, including you and me. My greatest concern is for those who are most vulnerable, the children, for they look to us as adults to protect and provide for them. And protect and provide for them we can and must do and we have the capability to do it! But the longer the Euro governments and lenders protract and enable this mess by not facing up to it, the worse it will be.
Dick
To learn more, please see: "Downgrades Loom for Banks: Moody's Weighing Ratings Cuts to 114 Institutions in 16 European Countries," The Wall Street Journal http://online.wsj.com/article/SB10001424052702304818404577345900847700424.html
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