Reggie Middleton
Zero Hedge
July 7, 2011
Earlier this morning I stated Structural Problems Cannot Be Solved Though Bailouts! As A Matter Of Fact, Bailouts Make The Situation Worse in reference to the situation surrounding Portugal’s downgrade to junk status and its inevitable default (in some form or fashion, most likely draped in the political nomenclature of something considerably more palatable to the sheeple). Well, the same goes for Greece, although to a much more drastic extent.
Bloomberg reports: Portugal Rating Cut on Possible Greek Follow
Europe is now inching toward a goal of getting banks to roll over 30 billion euros of Greek bonds, instead of opening a hole for the official lenders to fill. French banks, with the biggest holdings in Greece, worked out a rollover formula that is serving as an example elsewhere, with two options for bondholders to replace their maturing securities.
At the same time, Standard & Poor’s said this week the plan may temporarily place Greece in “selective default” if implemented.
Portugal this year joined Ireland and Greece in turning to the EU and the International Monetary Fund for emergency funding after their budget deficits ballooned. Moody’s yesterday said it also based its credit rating cut on risks that Portugal won’t be able to fully achieve its deficit-reduction target.
“It’s a reminder that the sovereign debt crisis does not end with Greece and that risks remain with other nations in addition to Greece,” said Gary Pollack, who helps oversee $12 billion as head of fixed-income trading at Deutsche Bank AG’s Private Wealth Management unit in New York.
I’d like to make this perfectly clear and have absolutely no problem going on the record with it in full HD fidelity…
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