Olund Road property. Last Thursday was "Black Thursday" for Greece. News reports told the world that Greece's budget problems were bigger than people had thought. Traders dumped Greek bonds.Greece's debt is now 'junk'...the rating agencies say that if the country is forced to reschedule creditors could get back only 30% of their money. Naturally, lenders are nervous. And investors fear that Greece's problems are not limited to the Hellenes. Sovereign debt problems are as 'contagious' as HIV. All it takes is a little hanky panky of the wrong sort...and you've got it!
Greece's budget deficit is 8.7% of GDP.
Portugal's deficit is the same.
Spain's is higher - at 10.4%.
Where's the US deficit? Last time we looked it was projected to be as high as 12% of GDP.
By many measures, the US is actually in WORSE shape than Greece. And the rating agencies have already warned about a possible downgrade of US debt too.And by all measures, the US has the biggest pile of debt in the world... Just wait until the sparks hit it. You'll see the world's biggest blow-up!
These dire words brought to you by "The Daily Reckoning" I read today the number of US citizens who have renounced their citizenship and are taking up permanent residence in other countries has more than doubled in 2009 over 2008. Are the rats abandoning the sinking ship? Just asking.
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