Summary: Reading the news today brings to mind the great question — why does each step in the disintegration of Europe surprise so many people? For those that would like to see the story, without the obscuring fog, here is a recap of the posts about Europe from the FM website. With some descriptive graphics.
The immediate trigger is inspectors from the Troika are due back in Greece this week to “assess” progress towards meeting targets. Since there is no way for a patient in an intensive care ward to stave himself back to health, it is not at all obvious how Greek leaders can convince their new economic lords and masters that they can do the impossible.
— Yves Smith, “EuroCrisis Intensiies“, Naked Capitalism, 23 July 2012 . Contents
Forecasting the crisis in Europe
Posts about Greece
Reporting Europe’s slow march to the cliff
Other articles about Europe’s march to unification
That’s an accurate way to describe it! History suggests that investors ignore the rating agencies when evaluating the major nations, since the ratings agencies have no unique ability or information (to put it mildly). As seen, for example, in their repeated downgrades of Japan — which had no visible effect.
Add to this Moody’s impending downgrading of Germany and the, pardon me, mood worsens further.
That’s an accurate way to describe it! History suggests that investors ignore the rating agencies when evaluating the major nations, since the ratings agencies have no unique ability or information (to put it mildly). As seen, for example, in their repeated downgrades of Japan — which had no visible effect.