"Suddenly, Europe’s problems are looking manageable" by Graham Bowley, New York Times | July 19, 2010
NEW YORK — Just two months ago, Europe’s sovereign debt problems seemed grave enough to imperil the global economic recovery. Now, at least some investors are treating it as the crisis that wasn’t.
Spain held an auction of 15-year bonds last week that went off without a hitch....
Also last week, Moody’s Investors Service downgraded Portugal’s credit by two notches, citing the nation’s debt burden and poor growth prospects, a sign the country’s underlying problems are not over. Yet investors, rather than punish assets linked to Portugal’s economy, seemed to take the news in stride.
Related: Ireland's Irritability
Nations like Spain, Portugal, and Greece had been cautious about holding big debt auctions as recently as last spring. Then, weak demand would almost certainly rattle global markets on fears that European nations would have trouble raising new money to cover their groaning debts. Investors were quick to sell on the mere hint of a credit downgrade....
Suddenly, Europe seems more stable to many investors than the United States, where there has been talk of a double-dip recession....
Economists warn the optimism over Europe’s prospects could prove temporary....
Behind the new optimism are the changes Europe put in place. These include a step by the European Central Bank to begin buying securities from banks, the creation of a fund to bail out troubled nations, and an agreement to let the International Monetary Fund intervene in European affairs.
The European nations at the center of the crisis have gone on the offensive, setting austerity measures to cut back bloated public sectors. Spain is making spending cuts and structural reforms in an attempt to cut its 20 percent unemployment rate.
At the time, these interventions seemed only to reflect hopeless foot-dragging and paralysis. But over time, they have proved pivotal to improving investor confidence, at least for now.In other word, the INTEREST PAYMENT isn't DUE tomorrow!
--more--"
Yeah, you SEE WHO REALLY MATTERS to the AmeriKan MSM, right?
I guess that's why the Globe ran with the roster of s*** stories since, huh?
Start scrolling, readers.
