Thursday, April 22, 2010

Actually, some good news for Greece (MCO)

If there is anything positive in the news for Greece today, it might be that Moody's has downgraded their debt.  That's because Moody's has some of the most wretched timing in the history of credit analysis.

Credit default swaps on Greece are hitting all-time highs.  From CMA Datavision:

Yields on Greece's 10year hit almost NINE PERCENT today, as the estimated Greek deficit hits 13.6% of GDP...

From Bloomberg:
Greece’s benchmark 10-year bond yieldrose 84 basis points to 9 percent today, almost triple the rate on bunds. As a civil servant strike closed hospitals and shut the 2,500-year-old Parthenon temple, the EU said today that Greece’s deficit in 2009 was worse than its previously forecast and Moody’s Investors Service cut its rating on Greek debt one notch to A3.
How do you get into a situation like this?  You can start by designating various jobs as "dangerous" and worthy of early retirement and generous pensions.  Dangerous jobs like working at a bakery and cutting hair.

I'm not kidding:

Copyright 2010 AlphaNinja

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