Countries Teetering on the Verge of Bankruptcy
ZeroHedge.com
05/12/2016
In the 15th century moneylender’s had their benches broken when they run out of their hard-earned cash on other people’s backs and hence the origin of ‘bankruptcy’. The broken benches, smashed stopped them starting up business again. Back then insolvency was public and it was irrevocable. Although, like everything where there’s a will, there’s a way and the broken benchers probably still got back into their moneylending line of business to fleece a few more before they went down the tubes again. That was the beginning of when banks started to become too big to fail.
Just recently France got another telling off from Moody’s and ended up beng downgraded. While the rest of Europe has managed to drag (almost) itself out of recession and see some sort of growth, France is still in the doldrums and suffering for its lack of initiative and lack of stimulus. It was downgraded from Aa2 to Aa1, despite the outlook being stable. The report from Moody’s stated that the problems will continue since France is not addressing the problems at the root of the matter, resulting in structural unemployment as well as weak profits for companies and losses in global markets. The report stated: “The current economic recovery in France has already proven to be significantly slower — and Moody’s believes that it will remain so — compared with the recoveries observed over the past few decades. In part, this is due to the erosion of competitiveness and loss of growth potential following the global financial crisis. It is becoming increasingly clear, in the rating agency’s view, that these problems will continue to constrain growth long after the cyclical recovery from the crisis is completed. In Moody’s opinion, France’s potential annual growth rate is at most 1.5% over the medium term. France faces material economic challenges, such as a high rate of structural unemployment, relatively weak corporate profit margins, and a loss of global export market share that have their roots in long-standing rigidities in its labour and product markets.”
The rating attributed to France is expected to remain as is for the next 12 to 18 months, which means that there will be no improvement in the French economy for another 2 years probably.
But, France is nowhere near as bad as some countries. There are some that are almost on the verge of implosion and they have soaring debts. What will happen to them and who are they?
Most In-Debt Countries in the world on the edge of Insolvency
The Rest…HERE
