The ratings agencies continue their assault on the euro this afternoon, as Moody's has just announced a new downgrade to Greek debt, from B1 to Caa1, barely above default status, and has left the outlook negative, indicating further downgrades are likely. This is a 3 notch downgrade in one swoop! Talk about laying some smack down...the dollar must need a bigger diversion than even we expected would be necessary!
While the banksters would love to start divvying up the Greek islands, the problem is that many of these are privately held (parts of one by The Doc's in-laws' relatives). Look for numerous government held assets to go up on the auction block in the coming days however, as the senior bondholders will rapidly turn into wolves once they realize significant haircuts are imminent.
This whole situation is obviously hugely bullish for gold and silver, as declining confidence in all fiat currencies results in more and more of the western world turning to the safety of physical gold and silver.
Moody's on Wednesday cut Greece's credit rating by three notches, citing a growing risk that the government will fail to stabilize its debt position without a debt restructuring.
Moody's downgraded Greece's ratings to the extremely speculative level of Caa1, seven notches into junk territory, from the previous level of B1.
The outlook on the new rating is negative, in a sign that another downgrade is likely in the short to medium-term.
