Another debt ceiling debacle could sink the economy
Last year's Congressional debt standoff hurt consumer confidence more than the collapse of Lehman Brothers, Betsey Johnson and Justin Wolfers write. This time could be worse. Read more at Counterparties
S&P says less pessimistic than markets on Greece
SINGAPORE |
SINGAPORE (Reuters) - Standard & Poor's said on Wednesday that it was "less pessimistic" on Greece than financial markets, after worries over Greece's debt problems led to increased risk aversion in markets in recent weeks.
"The political standing of this government is still very high, if recent polls are to be believed," David Beers, S&P's global head for sovereign ratings, told Reuters on the sidelines of a conference in Singapore.
S&P warned last week it may downgrade Greece by one or two notches within a month, citing downside risks to economic growth that will make it harder for the government to reduce the fiscal gap.
"We were fairly clear to the market...and that would still, if current trends continue, mean we are less pessimistic than the market is on how this story will evolve," he said.
S&P currently rates Greece BBB+, or two notches above the lowest investment grade, with a negative outlook.
(Reporting by Kevin Lim and Nopporn Wong-Anan; Editing by Neil Chatterjee)
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If the Greeks implement their austerity plans it will so wreck their economy as it is that it will take twice as long to recovery.
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