larus
Well-known member
From BBC. This is where we could go if we don't sort out our borrowing. Thanks Gordon 'Twat' Brown. This is why the spend, spend, spend menatality of the left always fails.
http://news.bbc.co.uk/1/hi/business/8647441.stm
Greece's debt has been downgraded to junk status by Standard & Poor's amid concern it was not able to take steps needed to tackle its economic crisis.
The struggling nation is appealing for 40bn euros from eurozone governments and the IMF to shore up its finances and allow it to make debt repayments.
But there are fears it will not meet conditions needed to access the funds.
Earlier, Portugal's debt was downgraded as doubts intensified about countries with substantial debt relative to GDP.
S&P said it was lowering its rating on Greece's debt to BB+ from BBB-, hitting US and European markets.
In London, the FTSE 100 index closed down 2.6% with most of the losses following S&P's downgrade of Greece. On Wall Street, the Dow Jones index was 1.4% lower at 11,052.1 points.
Shares in Greek banks slumped by more than 9% , the largest one-day fall in bank shares for 18 months.
On Monday, German Chancellor Angela Merkel had pledged German support to a European financial aid package for Greece, provided "certain conditions" were met.
She said that Germany would play its part in order to ensure the future stability of the euro but that Greece would have to be ready to accept "tough measures" over several years in return.
Greece needs to raise 9bn euros ($11.9bn; £7.7bn) by 19 May, but has said it cannot go to the markets because of the "prohibitive" interest rates.
The Greek government's cost of borrowing on the money markets has reached record levels in recent days amid investor concern over whether a 40bn euro bail-out package for Greece will be agreed.
Eurozone countries, together with the International Monetary Fund, have yet to agree details of the package.
Investors are also concerned that the Greek government's austerity measures - designed to cut domestic spending and reduce its ballooning budget deficit - will prove too unpopular with the Greek public.
S&P warned holders of Greek debt that they only had an "average chance" of between 30% and 50% of getting their money back in the event of a debt restructuring or default.
It said its action to cut the rating resulted from its "updated assessment of the political, economic, and budgetary challenges that the Greek government faces in its efforts to put the public debt burden onto a sustained downward trajectory".
http://news.bbc.co.uk/1/hi/business/8647441.stm
Greece's debt has been downgraded to junk status by Standard & Poor's amid concern it was not able to take steps needed to tackle its economic crisis.
The struggling nation is appealing for 40bn euros from eurozone governments and the IMF to shore up its finances and allow it to make debt repayments.
But there are fears it will not meet conditions needed to access the funds.
Earlier, Portugal's debt was downgraded as doubts intensified about countries with substantial debt relative to GDP.
S&P said it was lowering its rating on Greece's debt to BB+ from BBB-, hitting US and European markets.
In London, the FTSE 100 index closed down 2.6% with most of the losses following S&P's downgrade of Greece. On Wall Street, the Dow Jones index was 1.4% lower at 11,052.1 points.
Shares in Greek banks slumped by more than 9% , the largest one-day fall in bank shares for 18 months.
On Monday, German Chancellor Angela Merkel had pledged German support to a European financial aid package for Greece, provided "certain conditions" were met.
She said that Germany would play its part in order to ensure the future stability of the euro but that Greece would have to be ready to accept "tough measures" over several years in return.
Greece needs to raise 9bn euros ($11.9bn; £7.7bn) by 19 May, but has said it cannot go to the markets because of the "prohibitive" interest rates.
The Greek government's cost of borrowing on the money markets has reached record levels in recent days amid investor concern over whether a 40bn euro bail-out package for Greece will be agreed.
Eurozone countries, together with the International Monetary Fund, have yet to agree details of the package.
Investors are also concerned that the Greek government's austerity measures - designed to cut domestic spending and reduce its ballooning budget deficit - will prove too unpopular with the Greek public.
S&P warned holders of Greek debt that they only had an "average chance" of between 30% and 50% of getting their money back in the event of a debt restructuring or default.
It said its action to cut the rating resulted from its "updated assessment of the political, economic, and budgetary challenges that the Greek government faces in its efforts to put the public debt burden onto a sustained downward trajectory".
), the government was spending more that it was raising, i.e. running a deficit. This is insane; at this stage of the cycle a country should be reducing it's debt. Gordon Brown has deceived for too long, yet too many people want an easy ride and don't accept that as a country we can't afford all of the services which we aspire to have. 
