Credit rating of the United States in 1917, down Mndhu
Last week was very difficult for the world markets, after fears that increased Albsnes of the U.S. economy in recession, a new phase again, as I took the loan crisis, the government bond market in the euro zone extends to Italy and Spain, Capacitated keep order. Moreover, over an event is unprecedented, but it was expected, as the United States lost its credit class higher, has reduced the agency "Standard & emergence of a" credit rating, classification of the United States credit on the loan long-term one notch from AAA to + AA.
The Agency considered the prospects of the United States in the field of borrowing in the meantime "negative", suggesting that the possible continuation of the reduction
The United States won a higher credit rating has introduced since 1917. For this, the decision to "the emergence of S &" on 5 August / August is a real revolution in the world economy, their results will not be clear until after the markets resume their work next week.
And record global stock markets now the largest losses, when losses approached investors as a result of loss of value of bonds during the period since July 26, the beginning of the wave of the current crisis, from $ 5 trillion.
It describes the evolution of the European Union stock markets in the events of this week, that "the bankruptcy of slow," collapsed when key indicators significantly during the five days of work, registering the London Stock Exchange's largest weekly loss over the last three years, 9.13%.
She noted the Paris Stock Exchange on 5 August, to the deterioration of the main index for the tenth session of the auction, respectively, and this has not happened since its adoption in 1987. Decreased the overall value of the bonds desired in the Paris Bourse during the last five sessions of the auction rate of 8.63%.
Accounted for losses in the stock market Vankfort 10.32%, and in the Brussels Stock Exchange 8.36%, 7.97%, Amsterdam, Milan and 9.55%, 6.77% and Madrid, and Zurich Stock Exchange in Switzerland, which does not belong to the European Union, 6.76%.
And incurred heavy losses exchanges United States, China, India and other countries.
The United States and the euro area Barta wave of the current crisis. Washington has succeeded in the last minute on August 2 / August to avoid bankruptcy, when possible for the White House and House of Representatives, controlled by the Republican Party agreed to raise the ceiling on government debt against the ratification of the program to reduce state expenditure.
However, the fierce debate between Democrats and Republicans on the threshold of the gap, the so-called bankruptcy, showed that the United States, as indicated by the newspaper "Times" British, "suffers from the burden of financial problems." And announced the "Daily Telegraph" of London this week's conservative turn, "the end of the American era," when you have the United States under the weight of huge debt, "to abandon its leadership role in the world."
The long debate in Washington about the potential bankruptcy frightened the business world, who came to the conclusion that the problem says the U.S. will grow the state religion, and that the loss of U.S. credit rating higher than a matter of time.
Were outlined and the agency "Standard & rise" in the Aug. 5, the result of this situation, the downward classification of the United States credit.
And sparked panic in the world of business the same time, the information published in this week, on reduced rates of growth of U.S. industrial production significantly and sluggish consumer demand. As a result, common in the market view that the U.S. economy is heading for a recession.
This resulted in a fall in demand in global markets to raw materials, including oil and minerals.
The episode of the new crisis in the euro area impact on the difficulties of the present United States, when the prices fall sharply state loan bonds, and grow revenue bonds, state loan in Italy and Spain.
Exceeded the benefit of bonds for the standard period of 10 years in these two countries EU members, the range of 6%, which is considered the maximum allowed specialists. In the case of access to 7%, the euro area on a country loses access to loans from the market borrowing of the private sector, and are forced to go to the EU request to help states and to the International Monetary Fund. And being the brunt of this situation now, all of Greece, Portugal and Ireland.
And raised since August 2 / August Introduction to the possibility of widening the list, joining Italy and Spain.
The result of the new wave of crisis, bond market, the euro area as a result of neglecting the leaders of the EU initiative in the international stock markets, which are available after a summit with the countries of the euro in the special July 21. He was Jose Manuel Barroso, European Commission President in his letter to the Heads of State and Governments of the countries of the European Union, which was distributed on 4 August, that "no decisions made at the summit after the effect of stability is anticipated." Barroso said that "we have in addition to this, to convince the market, we will take the steps necessary to overcome the crisis."
According to Commission President said the crisis exceeded the euro area. Barroso insists in this manner, the need to promote the work of the European Financial Stability Fund (EFSF), which granted new powers to the summit, as soon as possible. He also called on President of the Commission to increase the assets of the EFSF, which now exceed 440 billion euros, and this is not enough.
In an attempt to stabilize the situation, had the leaders of countries throughout the European Union on 4 and 5 August / August intensive multilateral consultations in order to perform the steps, which were agreed two weeks ago, on the support of financially weak states as soon as possible.
Asked Italian Prime Minister Silvio Berlusconi for an urgent meeting "of the Group of 7" financial, and then maybe, an extraordinary summit of the Group in order to "dispel the fear that with the market
