Reply With QuoteTaking up debts to pay the debts of other nations wasn't a good idea to begin with.
Germany's AAA credit rating on 'negative outlook'
Germany's AAA credit rating on 'negative outlook'
Germany could follow France by having its AAA credit rating downgraded
Credit ratings agency Moody's has changed its outlook for Germany's AAA credit rating to negative, the first step towards a possible downgrade.
Moody's said the country was at risk from the increased likelihood of a Greek exit from the euro and the need to provide more support to Spain.
Concerns are growing that Spain will have to seek a full bailout.
Spain's short-term borrowing costs rose on Tuesday at a government bond auction.
Spain paid an interest rate of 3.691% to borrow funds for six months, compared with a rate of 3.237% it was charged one month ago.
In another sign of investors' wariness of Spain, the yield on its 10-year bonds remained near record-high levels at 7.55%.
Other countries were also seen as potentially growing more vulnerable.
The Netherlands and Luxembourg - both AAA rated economies - were also put on negative watch.
A "negative outlook" posting from Moody's, one of a handful of agencies that assess the creditworthiness of borrowers, reflects a higher risk that the actual rating will be cut at some point in the next two years.
Earlier this year, Moody's put France and Austria's AAA ratings on negative outlook.
Moody's said there was an increased chance that Greece could leave the eurozone, which "would set off a chain of financial sector shocks".
It added that policymakers could only contain these shocks at a very high cost.
http://www.bbc.co.uk/news/business-18963810
Taking up debts to pay the debts of other nations wasn't a good idea to begin with.
Isn't this the same guys who rated the entire sub-prime mess as AAA double + GOOD!!! right up until it wasn't?
Is there a financial crisis and nobody notices it? People don´t stop buying things. For some reasons they stopped selling federal saving bonds. Economists here?
Welcome in Hell with usGermany could follow France by having its AAA credit rating downgraded
Part of the reason, not the only oneTaking up debts to pay the debts of other nations wasn't a good idea to begin with.
other reasons : shrinking of exports due to weak economy in Eurozone (export being vital for Germany)
weak tertiary/service sector
lack of manpower due to shrinking population (yes a low unemployement can also be a bad sign sometimes)
regional disparities
involvment in Greece and Spain banks (before the whole 2008 mess)
same recipes, same disaster (or sort of) as your neighbourhood
That's because the books they looked at were cooked.Originally Posted by CJvR
It was only a matter of time before Germany's bail out the EU policy would catch up to them. They'll never see a dime of those loans repayed.
Tonight, we dine in hell my French friendWelcome in Hell with us
You bring the wine, I bring the schnitzel and the girls are imported from our new Southern European colo...financially challenged neighbors
We need to bomb Moody´s for creating world crisis. I say let them burn!
Their business smell fishy, that I agree, but the truth is that most investment bankers and currency dealers don't take heed of their ratings.
While the outlook is negative, the exports are on a high. The EZ downturn is in the books for months.
Combined with the ongoing weakness of the US economy and with the slowdown of the BRICs, it becomes difficult.
Consumer spending is high
Population is on the rise and wages for high skilled are moderate
For decades. Why should that be a reason?
Overall the Moodys outlook is a helpful argument to stop further request for more money.
Bah, it's just Germany purposefully spooking markets!!!1!
http://germanywatch.blogspot.de/2011...g-markets.html
Wow. Does this happen to be JustBrowsing's personal blog about Germany? Truely remarkable.
Wtf, La Russophobe now is La Germanophobe?
The "Analysts" seem to be british.
You said it the outlook is negative. Moreover the outlook in most of the markets are way more negative too. Clouds are gathering in the skyWhile the outlook is negative, the exports are on a high. The EZ downturn is in the books for months.
Combined with the ongoing weakness of the US economy and with the slowdown of the BRICs, it becomes difficult.
Not related. Read the fact as no back up sector if things go south with export sector.Consumer spending is high
Due to imported skillforce and immigrants.Population is on the rise and wages for high skilled are moderate
And moderate wages for skilled people is not really a good thing as it promotes brain drain/fleeing of the middle class.
Basically the outlook is that you (like us) are importing not-so-skilled workers but losing a part of your skilled workforce to other countries
Because they are still in need of infrastructures and economical help even with the money poured in, triggering debts at lander and federal level ?For decades. Why should that be a reason?
PS :disclaimer this is not an attack on Germany but from an international pov you fare less well than what you think (but still way better than some countries in the Eurozone). On the other hand Moody's analysts are not known for their error-proof analyses
Oh nein zey are on tu us!
Los los prepare the panzers!
"Die Fahnen hoch..."
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