The increased cost that will face the Spanish government debt, does nothing but make the situation more heavy. And if the reduction in qualifying was bad news for Spain, it is also for other economies such as Italy, Ireland and Portugal are in a similar situation. Olympics might disagree with that approach. As the N1H1 virus, economies are contagiaran rapidly and access to funding will have to higher costs. The euro did not feel safe from the black day that lived the last Wednesday and returned to see the floor. The eurozone currency reached new annual lows and remained bearish perspective, with the target set at break the floor of US $1.30, but yesterday, the expectation of the rescue of Greece, gave him a little air and managed to recover against the dollar. Despite relief yesterday, lives a tense calm in Europe. The situation in which Europe is comparable with the worst moments of Latin America where the crisis is expanding to through borders leading economies to a destructive recession of the productive apparatus. Perhaps after this tragic experience, and he lived in the crisis subprime, the developed world can better understand the emerging economies and their problems, in particular, to Latin American economies.
And as it was the case with the Argentina debt rating in 2002, this time S & P has decided to lower to trash the the sovereign debt rating of Greece that is now BB + (category of speculative investments). I think that S & P should not be so wrong this time in your score that Greece continues to surprise, to evil, with the magnitude of the need not to fall into default rescue: 135,000 million euros, according to ensured the German economy Minister, Rainer Bruderle, which would be provided by the European Union and the IMF. Just the help you need in these times Greece is triple than expected at first. It will be enough or you need more? And what to do if the needs of? Greece are even higher? If we consider that the rescue is the lesser evil, not want to imagine what can happen to the European and global economy in the event that Greece did not receive help. If the numbers are correct, Spain should disburse some 11,700 million euros to bail out Greece but who will rescue Spain? A fact that reveals the importance of preventing a possible collapse of the Greek economy: according to the estimates made by Standard & Poor s, in case of a bankruptcy in the Greek economy, the bondholders only recover between 30% and 50% of the nominal value of the bonds, so the estimated loss would be about 200 billion euros. Any similarity with the Argentina of 2002 is pure coincidence and believe me that I would not be in the shoes of that bonista be cheated by the Argentine bonds decided to entrust their savings in countries of a continent with better background as Europe and decided to seek a minimum of profitability betting on Greece. Continue reading OPPORTUNITY of investment – the actions recommended in our report of value investment portfolio MUNDIALsuben 20% in just 2 months, an annualized yield of 120%. If you begin to follow our recommendations on Wall Street and have 20% more money on your account as our subscribers of world value, continue reading here.
