British banks that we’re told are just fine just borrowed £22bn at a loss from the ECB. Hmm. Think ‘meltdown’.
Greece’s long-term foreign currency debt was downgraded to C from Ca late yesterday [Saturday] by Moody’s. The ratings agency said in a statement that investors who participate in the nation’s debt exchange will get about 70% less than the face value of their holdings. The deal constitutes “a distressed exchange, and hence a default,” the New York-based rating company said. Think ‘Merkel meltdown’.
Spanish Prime Minister Mariano Rajoy said his government, which came to power at the end of 2011, will prepare a 2012 budget that aims to reduce its deficit to 5.8% of gross domestic product, far in excess of the 4.4% target his predecessor, José Luis Rodríguez Zapatero, had committed to. Mr. Rajoy said a rapidly deteriorating economic situation and a large 2011 budget overrun made the wide deviation necessary.Think ‘major Merkel meltdown’.
“We have not exited the economic crisis but we are turning the page,” said Nicolas Sarkozy, France’s president. “The strategy we put in place is bearing fruit.” Think ‘major mixed metaphor meltdown’.