Links and Reading for December 8th
December 8, 2009 6:00 pm
Some of the more interesting and important items for December 8th :
- Dubious distinction – Greece becomes first euro-zone country to see its debt rating cut below single-A as worries mount about Athens' capacity to fix deteriorating finances, weighing on the single European currency.
- Shhhh, Dubai Has Another Little $20 Billion Problem : The Disciplined Investor – When we first learned about Dubai’s debt woes a couple of weeks ago, it was estimated that $46 billion plus was in danger of default. The world markets sold off hard as there was concern that this level of sovereign default could not be absorbed by the system. Soon after, fears were allayed as it was announced that it was really only $26 billion in question. Whew, that was close!
- CIT Group to exit bankruptcy protection Thursday – Yahoo! Finance – CIT Group filed for bankruptcy protection on Nov. 1 after it failed to restructure outstanding debt to alleviate a cash crunch. The reorganization plan, which was approved by key bondholders in advance, reduces CIT's total debt by $10.5 billion. It also defers debt maturities for three years.
- Obama’s Mortgage Relief Plan Far Behind Target – NYTimes.com – Only one in three homeowners who have signed up for the Obama administration’s mortgage relief plan have sent back the necessary paperwork, highlighting continuing problems for the government’s effort to stem the foreclosure crisis.
- Greek Stocks, Bonds Slide for Second Day on Downgrade, Worsening Finances – Greece, Latvia and Dubai – Next up?
- Moody’s Voices U.S., U.K. Concerns – Moody's Investors Service says the U.S. and U.K. must prove they can whittle down their ballooning deficits to avoid threats to their triple-A credit ratings.
In a report released on Tuesday, Moody's set the two countries apart from other top-rated sovereign borrowers, calling them merely "resilient" rather than "resistant," a label it applied to Canada, France and Germany, where public finances are in better shape.
- Bernanke: Too soon to tell if recovery will last – Interesting…
- Japan May Ban Manufacturers From Hiring Temporary Workers, Minister Says – Interesting. So, they aare trying to kill profits?