Spain credit rating downgraded to negative

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Spain credit rating downgraded to negative

Postby fitkid » Wed Dec 09, 2009 11:19 pm

DUBAI 2 The next 1 of many ;)

http://news.bbc.co.uk/1/hi/business/8405029.stm

Spain credit rating downgraded to negative

The Spanish government has tried to keep unemployment down
Spain has had its credit outlook cut to negative from stable by the ratings agency Standard & Poor's.

The agency said Spain faced a deeper deterioration in public finances and a longer period of economic weakness than it had previously expected. :?

The news rattled European markets, which were already unsettled by Tuesday's decision by another ratings agency, Fitch, to downgrade Greece.

Stock markets in London, Paris and Frankfurt all closed lower.

"Reducing Spain's sizable fiscal and economic imbalances requires strong policy actions, which have not yet materialised," Standard & Poor's said in a statement.

Spain is still in recession and the government has launched a massive public works programme to try to keep unemployment under 20%.

"We don't agree with this decision," a spokesman for the Spanish economy ministry said of S&P's move.

Spain's debt is expected to hit 67% of gross domestic product next year, according to S&P, compared with 125% forecast for Greece.

Meanwhile, the Greek prime minister has promised to shore up the country's public finances. :roll:

"Either we eradicate the debt or the debt will eliminate the country," George Papandreou said, copying a phrase first used by his father Andreas, who also served two terms as prime minister. :lol: :lol: :lol:
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Re: Spain credit rating downgraded to negative

Postby markinspain » Thu Dec 10, 2009 8:24 am

Thanks for posting. My usual monthly source for the Spanish economy hasn't posted on his blog this month as he's gone down the facebook route and I can't be arsed with all that.

But as I have said before, the unemployment situation isn't the main problem in Spain (nor in much of the rest of Europe now). It's the fact that more than 50% of the population are either retired or a state worker. When you add in the unemployed and the kids, you are getting close to one worker having to support nearly two others. Something has got to give!
People say, "Don't you miss it, Mark?" I say, "What, England? Nah. f**king place. It's a dump. Don't make me laugh. Grey, grimy, sooty. What a sh*t hole. What a toilet. Every **** with a long face shuffling about, moaning, all worried. No thanks, not for me." They say, "What's it like, then, Spain?" And I'll say, "It's hot. Hot. Oh, it's f**king hot. Too hot? Not for me, I love it."
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Re: Spain credit rating downgraded to negative

Postby grumpy-old-man » Thu Dec 10, 2009 8:34 am

markinspain wrote:Thanks for posting. My usual monthly source for the Spanish economy hasn't posted on his blog this month as he's gone down the facebook route and I can't be arsed with all that.

But as I have said before, the unemployment situation isn't the main problem in Spain (nor in much of the rest of Europe now). It's the fact that more than 50% of the population are either retired or a state worker. When you add in the unemployed and the kids, you are getting close to one worker having to support nearly two others. Something has got to give!


Hi MIS,
are you seeing things change in everday life yet ?
Obviously the debt per spanish person will be nowhere near the UK debt per person but even so, a change is a change:

viewtopic.php?p=370#p370

Edited by Pixel8r: If you post a link within the site don't include it with URL tags, that way it will not open in a new window :)
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Re: Spain credit rating downgraded to negative

Postby markinspain » Thu Dec 10, 2009 9:33 am

grumpy-old-man wrote:Hi MIS,
are you seeing things change in everday life yet ?
Obviously the debt per spanish person will be nowhere near the UK debt per person but even so, a change is a change:


Hi GOM,

Not really. There seems to be a phoney war. The mortgage rates have dropped a lot so those in work are doing quite nicely despite the cost of living increasing. The ones who have lost their jobs are well supported by their own family networks. Also, many the youngsters seem to be continuing to study close to their 30s which keeps them off the unemployment figures. And of course, you have the black economy which still accounts for a large part of economic activity.

The only people who are really struggling are all the foreigners. The working British Expats who had estate agencies and bars have mostly gone back to the UK but the pensioners seem to want to tough it out despite the currency depreciation. As for all the other countries, the ones who had skills or gained skills while here seem to return to their own countries whatever the conditions. All the unskilled get left behind and either work black or turn to crime.

MIS
People say, "Don't you miss it, Mark?" I say, "What, England? Nah. f**king place. It's a dump. Don't make me laugh. Grey, grimy, sooty. What a sh*t hole. What a toilet. Every **** with a long face shuffling about, moaning, all worried. No thanks, not for me." They say, "What's it like, then, Spain?" And I'll say, "It's hot. Hot. Oh, it's f**king hot. Too hot? Not for me, I love it."
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Re: Spain credit rating downgraded to negative

Postby grumpy-old-man » Thu Dec 10, 2009 9:36 am

markinspain wrote:The only people who are really struggling are all the foreigners. The working British Expats who had estate agencies and bars have mostly gone back to the UK but the pensioners seem to want to tough it out despite the currency depreciation. As for all the other countries, the ones who had skills or gained skills while here seem to return to their own countries whatever the conditions. All the unskilled get left behind and either work black or turn to crime.

MIS


cheers Mark , that would seem to mirror what I am reading about France (or Brittany in particular). It's the expats that are getting hit, which is what you would expect really, either form an over leveraged pov or pension/savings issues due to pound currency devaluation.
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