like the Neil Sedaka song goes.
Australia gets it's .25% rate drop today as a result of the EZ problems. At lest some good has come of it.
But now Austria, Belgium, Finland, Germany, the Netherlands, and Luxembourg could all lose their AAA credit rating. They've been put on S&P credit watch negative.
What about France you say? Looks like it's just escaped but you'd reckon the above group excluding Belgium and Austria are the core economies. So looking deeper maybe there is evidence of national problems systemic of each country's debts, deficits, GDP and growth.
Germany should take an affront to this downgrade as we would if in the same predicament but last weeks bond auction problem and it's interdependence on surrounding countries seems to be dragging it into the same sty as other 'lesser' countries.
Writing's on the wall. Germany has allowed disintegration to happen and won't take it's medicine like the rest of the EZ.
If the deal this weekend is a grease and lube on the same old crate instead of a new shiny model then it just won't be S&P who'll move in and make things very unpleasant.
For months the markets have been edging closer to the exits. While the heats lowered because of Italian and Greek deficit lime lighting, quite bond off loading is taking place, desperate banks are taking bigger chances to recoup rotting assets values.
Only makes things worse when/if the axe falls.
If the EZ can't come up with something real, tangible and appropriate then perhaps some time in the months ahead confidence in it's ability to remain unified will dissolve dragging itself, the US, China and us with it.
Let's hope this S&P threat puts the fire under the German resolve.
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