Banking Crisis
source: http://www.nytimes.com/2011/07/06/business/global/06euro.html?pagewanted=2&_r=1&hpw
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The NYT reported Tuesday that Moody’s cut its rating on Portugal’s long-term government bonds to Ba2 from Baa1 and said the outlook was negative, suggesting more downgrades might be in store. Even though Portugal negotiated a $116 billion rescue package in May, the ratings agency cited the risk that the country would need a second bailout before it could raise funds in the bond markets again and that private sector lenders would have to share the pain. The new center-right coalition government, led by the Social Democrats and Prime Minister Pedro Passos Coelho, have pushed ahead with austerity measures and other reforms pledged by Portugal in return for its bailout. Among such austerity measures, Mr. Passos Coelho’s government said last week that it would need to raise taxes to meet its budget deficit target.
Hopes that Greece’s problems might be brought under control soon were deflated after Standard & Poor’s said Monday that a proposal by French banks to help Greece to meet its medium-term financing needs would constitute a de facto default because banks would be required to roll over loans for a longer term at a lower interest rate. The German chancellor, Angela Merkel, said Tuesday that the opinions of the I.M.F., the European Central Bank and the European Commission should be given more weight than those of the rating agencies, according to The Associated Press. “I trust above all the judgment of those three institutions,” Mrs. Merkel said.
I am not sure that I understand why Moody's or S&P need to be involved at all. If the banks have worked out a deal, then a deal is worked out. If the banks choose to roll over loans, wait longer for them to be paid off, and take less interest, isn't that better then being defaulted on? Isn't it better to help keep a country going, rather than sink it into depression and possibly drag the rest of the world with it? Does everyone have to be so greedy that when the worlds economy is doing poorly that you have to continue to expect interest rates that are unreasonable for the times? It is time that the world's finances be taken back by the people; End this world wide grab for money for nothing; stop extorting countries, and individuals for that matter, in order to gain wealth.
"I believe that banking institutions are more dangerous than standing armies…If the American people ever allow private bankers to control the issue of currency… The banks and corporations that grow up around them will deprive that people of their property until their children wake up homeless on the continent their fathers concurred" Thomas Jefferson
"I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is now controlled by its system of credit. We are no longer a government by free opinion, no longer a government by conviction and the vote of the majority, but by a government by the opinion and duress of a small group of dominant men". Woodrow Wiilson
http://www.nytimes.com/2011/07/06/business/global/06euro.html?pagewanted=2&_...
Hopes that Greece’s problems might be brought under control soon were deflated after Standard & Poor’s said Monday that a proposal by French banks to help Greece to meet its medium-term financing needs would constitute a de facto default because banks would be required to roll over loans for a longer term at a lower interest rate. The German chancellor, Angela Merkel, said Tuesday that the opinions of the I.M.F., the European Central Bank and the European Commission should be given more weight than those of the rating agencies, according to The Associated Press. “I trust above all the judgment of those three institutions,” Mrs. Merkel said.
I am not sure that I understand why Moody's or S&P need to be involved at all. If the banks have worked out a deal, then a deal is worked out. If the banks choose to roll over loans, wait longer for them to be paid off, and take less interest, isn't that better then being defaulted on? Isn't it better to help keep a country going, rather than sink it into depression and possibly drag the rest of the world with it? Does everyone have to be so greedy that when the worlds economy is doing poorly that you have to continue to expect interest rates that are unreasonable for the times? It is time that the world's finances be taken back by the people; End this world wide grab for money for nothing; stop extorting countries, and individuals for that matter, in order to gain wealth.
"I believe that banking institutions are more dangerous than standing armies…If the American people ever allow private bankers to control the issue of currency… The banks and corporations that grow up around them will deprive that people of their property until their children wake up homeless on the continent their fathers concurred" Thomas Jefferson
"I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is now controlled by its system of credit. We are no longer a government by free opinion, no longer a government by conviction and the vote of the majority, but by a government by the opinion and duress of a small group of dominant men". Woodrow Wiilson
http://www.nytimes.com/2011/07/06/business/global/06euro.html?pagewanted=2&_...
