Telegraph Live: Reports that 9 Banks in Portugal have had their credit rating downgraded by the credit agency Moody’s, the article states the following, “ ..But this should be taken seriously - the downgrade is a reaction to the banks' exposure to government debt and the country's weak growth prospects. ”. Thus after Greece it seems Portugal could be the next go, its getting a bailout from the EU/IMF, it cant borrow on the market, its busted in real terms, without the bailout Portugal would default on its debts. It can be argued in strategic terms that the EU as the whole needs a BIG plan, to bailouts out PIIGS in one go, but we are talking serious money here folks, 2-5 trillion euros, to wipe out all the debts of the EU. In this kind of the plan the UK would have to get its wallet out, it would mean in a odd way underwriting the Euro, the very thing that the Germans don’t want to do, but due to the fact that the UK can borrow, its bonds are low to sell it just might be possible. The only way you would get that through the Conservative Party is if the UK regained many of its domestic powers from the EU, also could veto any new directive from the EU at any level. Don’t hold your breath for that folks, there are few real world leaders around these days, that is why this blog always supported Lady Thatcher and Ronald Reagan, real leaders.
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