May 21, 2009
The S&P issued a negative outlook on the debt of the UK yesterday to negative, from stable. A few months ago I wrote a post slash rant about the UK being the world’s largest Ponzi scheme for having so much external debt in relation to their UK.
It now looks like all the borrowing is beginning to catch up to them as the next thing to possibly come is a downgrade of their actual credit rating. That happens, and the UK economy is going to come under increased amounts of pressure.
The US has also been spending massive amounts of money in an effort to get the economy back on track, and now there are fears that the USA could lose its AAA credit rating, leading to a further weakened dollar and higher interest rates.
- Roubini on the Carry Trade
- Gulf States Takes Steps Toward Unified Currency
- 3-Month Treasury Bill Yields Turn Negative
- Credit and Equity Markets In For Massive Turmoil According to RBS
- Short Term Rates Down, Long Term Rates Up, Economy Down