Posted on 01/15/2012 3:41:51 PM PST by bruinbirdman
Global markets are set for a rocky day of trading after German leader Angela Merkel warned that it could take many months to rebuild confidence in the eurozone and schisms over financing the bloc's bail-out fund re-emerged.
The German chancellor warned that Standard & Poor's decision to downgrade nine eurozone countries on Friday evening demonstrated that politicians needed to step up their efforts to resolve the crisis, warning that it was a "longer process" that would take more than a few months.
"The decision confirms my conviction that we have a long way ahead of us before investor confidence returns," she said in a radio address. Germany was not among the countries downgraded.
The downgrades, after markets closed on Friday, marked a further escalation of the debt crisis, which has seen investors lose faith in euro governments' ability to service their debts.
Stalled talks over "haircuts", or writedowns, of Greek government debt will further worry investors, as they pose the threat of Athens making a disorderly default.
Nicolas Sarkozy, the French President, yesterday called for cool heads after his country was scalped of its prized triple-A rating, pushing up its borrowing costs.
"The crisis can be overcome provided that we have the collective will and the courage to reform our country," he said. "We must resist, we must fight, we must show courage, we must remain calm."
The rating agency had explained its move by warning that recent European policies "may be insufficient to fully address systemic stresses in the eurozone". While downgrades were widely rumoured, its decision to cut the ratings of some but not all eurozone nations has complicated the political situation.
In the UK, William Hague, the Foreign Secretary, warned that the clutch of downgrades "is serious. It underlines the fact that the
(Excerpt) Read more at telegraph.co.uk ...
Merkel's an optimist...
Socialism is such a failure. Politicians buy votes.with other people’s money and then, when it runs out, the entire country becomes a slave to the international banks. This is why Wall Street and the banks push for socialism - debt slavery.
'The Consolation of Blogging: The European Union -- a State of hopeful confusion'
I love that cartoon. It’s a keeper. Subtle, succinct, brilliant.
The socialists owe so much money that haircuts will not do the trick. We’re talking scalping here .... and noooooobody is going to agree to that. Just another delaying tactic to get through the next European election cycle before the house of cards collapses. That being said, us Americans better be preparing as the international bankers and globalist business people have long ago tied us to their upcoming failure.
yitbos
We'd better get the presidency and both houses of congress in the hands of free marketers next fall, or we will see something no can imagine.
Its from De Groene Amsterdammer, Amsterdam
yitbos
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