Of course not as a hard default from that country now appears to be inevitable!
"...Unfortunately, despite the efforts of Greece’s leadership, the proposal put forward by the Steering Committee of the PCIC—which involves an unprecedented 50% nominal reduction of Greece’s sovereign bonds in private investors’ hands and up to €100 billion of debt forgiveness— has not produced a constructive consolidated response by all parties, consistent with a voluntary exchange of Greek sovereign debt and the October 26/27 Agreement..." (Source)
And yet the Greece debt crisis is only one cog in the grinding gears and seizing engine of the Eurozone!
On Friday S&P took the somewhat expected step of downgrading nine Eurozone countries including France and Austria both losing their AAA ratings.
-France was downgraded from AAA to AA+
-Austria was downgraded from AAA to AA+
-Italy was downgraded two more levels from A to BBB+
-Spain was downgraded two more levels
-Portugal was downgraded two more levels
-Cyprus was downgraded two more levels
-Malta was downgraded one level
-Slovakia was downgraded one level
-Slovenia was downgraded one level
Can the U.S., muddling through an Obama inspired malaise which includes massive borrowing needs, slow to non-existent economic growth and foreigner investors now net-sellers of our debt, possibly be immune to the carnage of the EU as some economists and forecasters seem to believe?
Caveat: If you are gong to listen to anyones advice try to make sure they are actually objective and aren't in some way employed by sell-side firms whose only goal is to sell you financial products or to try and talk up the market!
For 2012 my assumption is that the yellow caution flag needs to be out!
Become a fan of The Political Commentator on Facebook here!
Follow The Political Commentator on Twitter here!
Friend The Political Commentator and Michael Haltman on Facebook here!
Connect with Michael Haltman on LinkedIn here (email@example.com)!