Moody’s Puts Germany On Warning For Credit Rating Downgrade

Moody’s puts Germany on warning for a credit rating downgrade due to the uncertainty and potential impact of plausible European debt crisis scenarios.

Moody’s has issued a negative credit rating outlook for Germany, Netherlands, Luxembourg meaning they face a credit rating downgrade in the near future.
It is an ominous sign for institutional investors who continue to stockpile billions upon billions into the ‘safe-haven’ of German bonds and comes after US stocks had a horrible day on Wall Street over European Debt fears.

In fact, continue to put their bonds into German, UK, and US bonds even though the yields are sometimes negative and in all cases the bonds are guaranteed to have a negative return after inflation.

Yes institutional investors are actually taking a loss to put their money in these bonds because many feel it is the only sure way to keep them from losing their money altogether.

Two other top-tier European nations, Luxembourg and the Netherlands also join Germany in being put on negative outlook, according to Press TV.

Categories: ECONOMY

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