15 eurozone nations face credit downgrade threat

AP Graphics

BRUSSELS - Standard & Poor's is threatening to downgrade the credit rating of 15 eurozone countries, saying the worsening debt crisis is affecting the bloc's strongest economies.

The decision Monday to put 15 eurozone countries, including AAA-rating nations such as Germany and Luxembourg, on watch for a possible downgrade piles pressure on eurozone leaders to find a solution to the currency union's debt troubles at a summit later this week.

S&P said its decision was "prompted by our belief that systemic stresses in the eurozone have risen in recent weeks to the extent that they now put downward pressure on the credit standing of the eurozone as a whole."

The only two euro nations not put on credit watch were Cyprus, which was already under review, and Greece, which already holds the world's worst rating.

Meanwhile, the leaders of France and Germany called for changes to the European Union treaty so that countries using the euro would face automatic penalties if budget deficits ran too high.

Merkel, Sarkozy to push new treaty on euro

Stock prices rose and borrowing costs for European governments dropped sharply. Investors viewed the Franco-German proposal — which will be debated at a European Union summit Friday — as an important first step in an emerging plan to save the euro.

Implementing treaty changes could take months, but a commitment to tighter coordination could open the way for further emergency aid from the European Central Bank, the International Monetary Fund or some combination.

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"Our wish is to go on a forced march toward re-establishing confidence in the eurozone," French President Nicolas Sarkozy said at a press conference alongside German Chancellor Angela Merkel. "We don't have time. We are conscious of the gravity of the situation and of the responsibility that rests on our shoulders."

[jeannutson]

Maybe S&P should go ahead with the downgrade because it seems the eurozone leaders have no effective solution to the crisis.

[realtimecoffee]

Liberals in full kill the messenger mode I see. The problem with being dependent on the rich is that the rich do not have a dependable year after year income to tax. During downturns they live off of accumulated assets (savings) and generate little or no taxible income. During those times the dependents scream for their fair share, and as we've seen, the chicken in every pot governments fall.

[venusvegasvada]

All these nations (including our own) living beyond their means.

Just when and who sounds the alarm bell?

I'm not saying the data indicates it's time to downgrade them, but I am saying that our system should have some kind of separate check and balance system that is NOT under the control of Govt's.

Maybe Standard and Poor's got it wrong back in the heyday of the ponzi-real estate marked fiasco. But maybe they are also on track with this to do us all a great favor too by firing warning shots that can't be ignored or controlled by Govt's that are too used to doing whatever they want to do and not dealing with reality.

[tiredofeverything]

by venusvegasvada December 5, 2011 7:09 PM EST
All these nations (including our own) living beyond their means.
----------------
Balls.
The nations aren't living beyond their means.
It's the super wealthy siphoning all the money out of the system.
Almost all nations have bailed out giant corporate entities.
Almost all nation have drastically lowered the tax rates on corporations and the wealthiest individuals.
Not to mention the flat out theft and fraud through all the banking shananigans.
And THAT is where the shortfall is happening.

It's a class war being waged by the rich against the middle class and poor.

Living beyond their means, what a load of crap.

[involved_indi]

The "rewards" of an entitlement mindset when combined with socialist or social democratic governments.

[cannuc]

in 1974 a book titled the bankers, on page 5 said. That credit agencies would make it impossible for nation to manage their own internal growth due to interferrance from bankers

[milkcowblues]

HahahahahahahahahahahahahaIMFhahahahahahahaECBhahahahahahaWORLDBANKhahahahahahahahaWTOhahahahahahaNAFTAhahahahahaFUTUREShahahahahaHEDGEFUNDShahahahahaJ.P.MORGANhahahahahahahaBANKORAMERIKAhahahahahahaha

[FreshxWater]

The same S and P that gave AAA ratings to what they knew were Junk Status securities. That was then sold as AAA and profits in the trillions came in. And if there was a thorough investigation it would be shown that S and P conspired with the Banksters and the 1% to defraud the American People out of trillions of dollars and nearly destroyed America. Does anyone believe S and P or AP anymore?

[rightbehind]

LOL! A corporation running around judging entire continents. I would thumb my nose at S&P.