Portuguese and Greek Bonds in Trouble (The Woes of Deficit Spending)

Wall St. Journal ^ | October 29, 2009 | Emese Bartha

[UAConservative]

FRANKFURT (Dow Jones)-Greek and Portuguese government bonds came under pressure Thursday after rating agency Moody's Investors Service issued fresh warnings on the countries' sovereign credit ratings.

Moody's placed Greece's A1 currency ratings on review for possible downgrade, and it also changed the outlook on Portugal's Aa2 rating to negative, citing serious fiscal deterioration in Greece and structural economic challenges and a lack of will to challenge them in Portugal.

[UAConservative]

This is what deficit spending and porkulus gets you: higher bond yields (translation=inflation), wrecked currency (euro will crash with dollar), and massive governmental failure. To make it worse for Greece and Portugal...

They elected socialists again this year!

Greece: http://www.businessday.co.za/articles/Content.aspx?id=83186

Portugal: http://www.google.com/hostednews/afp/article/ALeqM5ixR2K1aVRFMAMmJcnY8kbbelry0Q

[proxy_user]

The problem in Greece and Portugal is that they use the Euro, so they can’t inflate. They actually have to pay their debts in real money.